Southern District of New York

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that BRUCE SILVA, a/k/a “Brucie,” a leader of the Bronx gang “Dub City,” which was affiliated with the larger MacBallers street gang, was sentenced to 22 years in prison.  On February 24, 2026, SILVA pled guilty to racketeering conspiracy and multiple firearms offenses in connection with shootings, one of which left the victim paralyzed, before U.S. District Judge Paul G. Gardephe, who imposed today’s sentence.   

“For years, the members of the so-called ‘Dub City’ gang terrorized several Bronx neighborhoods in their claimed territory by repeatedly shooting at rivals and fellow gang members alike,” said U.S. Attorney Jamie McDonald.  “The significant sentences imposed in this case serve to hold the leaders and members of this violent street gang accountable for their gun violence and other criminal activity.  This Office will continue to work with our federal, state, and local partners to dismantle violent criminal organizations and protect the communities they prey upon through violence.”

According to the charging instruments, court filings, and statements made in court:

The “Dub City” gang was a criminal organization based in the Mt. Hope and Morris Heights sections of the Bronx, New York, whose members predominantly were also members of the larger MacBallers street gang.  A map of Dub City’s claimed territory is below:

From 2019 until the defendants were arrested in April 2023, the Dub City gang members sold drugs, committed robberies, committed financial fraud, used guns, and committed numerous acts of violence in furtherance of the Dub City gang, including shootings against members of rival gangs and against other Dub City gang members. The violence committed by the defendants included shootings where innocent bystanders were hit.   In one case, SILVA shot at an individual, causing permanent paralysis.  In another case, co-defendant BRUCE MELVIN shot at a rival gang member, hitting an innocent bystander in the leg.

In total, the defendants were collectively convicted for their roles in eight separate shootings on Bronx streets between summer 2019 and summer 2022.

The following photographs depict Dub City members and co-defendants SILVA, MELVIN, and ELIJAH POUGH firing their weapons at rival gang members and others on Bronx streets:

In imposing today’s sentence, Judge Gardephe said that Silva poses a “clear and present danger to the community.”

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A chart containing the names and ages of the defendants, the charges they were convicted of, and the sentences they received is set forth below.

Mr. McDonald praised the outstanding investigative work of the New York City Police Department and Homeland Security Investigations, and also thanked the Bronx County District Attorney’s Office for its assistance. 

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Michael R. Herman, Jacob R. Fiddelman, and Matthew J. King are in charge of the prosecution. 

Defendant

Age

Conviction 

Sentence

Racketeering conspiracy

Two counts of use, possession, and brandishing of a firearms in connection with an attempted assault with a dangerous weapon in aid of racketeering

Possession of ammunition after a felony conviction

22 years in prison; 

3 years supervised release

Racketeering conspiracy

Two counts of use, possession, and brandishing of a firearms in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

240 months in prison; 

5 years supervised release

144 months

3 years supervised release

Racketeering conspiracy

Use, possession, and brandishing, of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

120 months

5 years supervised release

Racketeering conspiracy

Use and possession of a firearm in connection with an attempted murder and assault with a dangerous weapon in aid of racketeering

120 months

5 years supervised release

60 months

3 years supervised release

51 months

3 years supervised release

36 months 

3 years supervised release

48 months (including 20 months spent in New York state custody)

3 years supervised release

36 months

3 years supervised release

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for the U.S. Department of Justice’s Civil Rights Division, Harmeet K. Dhillon, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that LARRY MONTES was charged with two counts of committing hate crimes in connection with his race- and religious-based assaults of a congregant and a security guard during a Shabbat service at a synagogue in Manhattan on August 14, 2026, as well as one count of destruction of religious property resulting in bodily injury.  MONTES is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.

“Today, the Southern District of New York filed federal charges against Larry Montes for his violent, hate‑motivated attack during Shabbat services at Central Synagogue on August 14, in which he disrupted worship, struck a congregant, damaged synagogue property, and spat on and headbutted a security guard,” said U.S. Attorney Jamie McDonald.  “An attack on a house of worship is an attack on the fundamental right to practice one’s faith safely, and our Office will work tirelessly to ensure the defendant is held fully accountable as we continue to protect all communities from hate‑driven violence.”

“These charges serve as notice that the Department of Justice will intervene to protect the public in the face of antisemitic and racially motivated attacks,” said Assistant Attorney General Harmeet K. Dhillon.  “The Civil Rights Division stands ready to combat assaults against worshippers and houses of worship.  Americans’ fundamental right to worship without fear of bias-motivated violence is sacrosanct and must be protected at all costs.” 

“Larry Montes’ targeted acts of violence on a congregant, security guard, and synagogue during a Shabbat service are deeply disturbing,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI condemns any incident driven by bias or hate, and we commend the swift actions of the security personnel and first responders.  Hate crimes have no place in New York, and we remain steadfast in protecting every community.”

“As alleged in the complaint, Larry Montes brought violence to Jewish New Yorkers engaged in prayer when he disrupted Shabbat services at Central Synagogue in Manhattan,” said NYPD Commissioner Jessica S. Tisch.  “I am grateful that an NYPD sergeant was there to take him into custody, and for the ongoing efforts of our Hate Crimes Task Force and our federal partners to hold Montes accountable for his alleged crimes.”

As alleged in the Complaint:(1)

On August 14, 2026, at a Friday night Shabbat service attended by approximately 375 people at a synagogue in Manhattan, MONTES stood up and began shouting and then physically struck and caused damage to two ceremonial silver candlesticks with gold accents.  The head of security at the synagogue proceeded to attempt to remove MONTES from the area where the service was taking place, during which MONTES stated, in sum and substance, and among other things, “fuck you people” and “I don’t fuck with you people.”  MONTES also punched with a closed fist a woman (“Victim-1”) who was attending services at the synagogue and, later, while being handcuffed by security guards and law enforcement, looked at one of the security guards (“Victim-2”), who is a Black man, and stated, in sum and substance, “fuck you [n-word].”  He then spat in Victim-2’s face and headbutted Victim-2 near Victim-2’s left eye socket.  MONTES also stated, in sum and substance, that he planned to return to the synagogue on a later date. 

During a recorded, Mirandized post-arrest interview, MONTES stated, in substance and in part, “fuck the Jews.  . . . It’s racial” and “I will never affiliate with no filthy fucking synagogues, either here or in fucking Israel.” MONTES also stated about his actions at the synagogue that “it’s all a racial thing” and that it was “all religious motivated.” 

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MONTES, 46, of the Bronx, New York, is charged with two counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison, and one count of damage to religious property resulting in bodily injury, which carries a maximum sentence of 20 years in prison.

The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. McDonald praised the outstanding investigative work of the FBI and the NYPD for their assistance.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with consultation from the Criminal Section of the Civil Rights Division.  Assistant U.S. Attorney Meredith C. Foster is in charge of the prosecution.

The charges contained in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.

A 14-count superseding (S2) indictment was unsealed today charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, has conducted a coordinated campaign of cyber intrusions into computer systems for 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (NGOs). The Mabna Institute stole more than 31 terabytes of academic data and intellectual property from these universities, as well as the email accounts of employees at the private sector companies, government agencies, and NGOs. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s Islamic Revolutionary Guard Corps (IRGC), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. Nine of the 17 defendants charged in the S2 indictment were previously charged in a 7-count indictment announced in March 2018. The case is assigned to U.S. District Judge Jesse M. Furman.

“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”

“Today’s charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “More than eight years after making the original indictment public, these charges make clear that the passage of time will not deter us from identifying and pursuing those who target the United States from abroad. Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength. This office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”

“These defendants allegedly built and profited from a sprawling hacking-for-hire operation that targeted the intellectual property of American and allied universities, companies, and government agencies for the benefit of the Iranian government,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s charges make clear to cyber adversaries everywhere: the FBI’s memory is long, and time will not blunt our resolve to pursue justice. The FBI will continue working with law enforcement and private sector partners to identify malicious cyber actors, disrupt their operations, and impose real cost on them, wherever they operate.”

According to the allegations contained in the S2 indictment: 

Background on the Mabna Institute

Gholamreza Rafatnejad and Ehsan Mohammadi founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. The Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel, including Abdollah Karima, also known as “Vahid Karima,” Mostafa Sadeghi, Seyed Ali Mirkarmi, Mohammed Reza Sabahi, Roozbeh Sabahi, Abuzar Gohari Moqadam, Sajjad Tahmasebi, Saeid Houshyar, Behzad Mesri, also known as “Skote Vahshat,” Manouchehr Hashemloo, Keyvan Fayaz, also known as “Achilles,” also known as “The Joker,” also known as “bc.monster,” Amir Barati, Saber Shahbazi Ballojeh, Arman Kahzadian, and Mojtaba Galekuhi, also known as “Mojtaba Ghaleh Koui,” to conduct cyber intrusions to steal academic data, intellectual property, email inboxes, and other proprietary data. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.

Concurrent with the unsealing of the S2 indictment, the U.S. Department of State’s Rewards for Justice program (RFJ) is offering a reward of up to $10 million for information leading to the location of defendants Mesri, Galekuhi, Kahzadian, Fayaz, and Ballojeh. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act.

University Hacking Campaign

The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.

The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.

In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by Abdollah Karima, and Gigapaper was also affiliated with Karima. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.

Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns

In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.

Eight Additional Defendants Charged in the S2 Indictment

The S2 indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions. For example, the defendants targeted Home Box Office, Inc. (HBO), a media and entertainment company headquartered in New York, New York. Mesri was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. Houshyar, Hashemloo, Fayaz, Ballojeh, and Kahzadian were also directly involved in the hack of HBO’s systems along with Mesri. 

Galekuhi, Fayaz, and Ballojeh participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities — including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data — causing victims to suffer an excess of $20 million in costs to investigate and remediate the intrusions. Barati moreover was involved in tracking the progress of the spearphishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting phishing messages. 

Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion. More information about this RFJ reward offer is located on the Rewards for Justice website. 

A chart containing the names, charges, and maximum penalties for the defendants is set forth below.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The National Security Division praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and thanked OFAC and the RFJ Program for their support. The Justice Department’s Office of International Affairs is providing critical assistance.

Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati for the Southern District of New York lead the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery and former Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a 14-count Superseding (“S2”) Indictment charging 17 members of the Mabna Institute, an Iran-based company that, since at least 2013, conducted a coordinated campaign of cyber intrusions into computer systems to 144 U.S.-based universities, 178 foreign universities, at least 42 U.S.-based private sector companies, at least 11 foreign private sector companies, at least five U.S. federal and state government agencies, and at least two non-governmental organizations (“NGOs”).  Through the defendants’ activities, the Mabna Institute stole more than 31 terabytes of academic data and intellectual property from universities, and the email accounts of employees at private sector companies, government agencies, and non-governmental organizations.  The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients.  Nine of the 17 defendants charged in the S2 Indictment were previously charged in a 7-count Indictment announced in March 2018.  The case is assigned to U.S. District Judge Jesse M. Furman.

“Today’s charges show that neither sophistication nor geographic boundaries will deter us from protecting the national security of our country from those who target the United States from abroad,” said U.S. Attorney Jamie McDonald.  “These charges, which include eight additional defendants, reveal the broader network allegedly behind a sweeping, state-sponsored campaign to steal research and intellectual property from American universities, businesses, and government institutions.  Cyber operations have become a central instrument of national power, and attacks on American and allied institutions carry direct consequences for our security and economic strength.  This Office and our partners will continue to protect American innovation and pursue accountability for the individuals behind these attacks.”

“The superseding indictment alleges that, at the behest of entities including the IRGC, these defendants hacked into universities and other research institutions worldwide, including the United States, stealing at least 31 terabytes of information and intellectual property of untold value,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division is committed to protecting the United States from such predators and will pursue those who perpetrate such crimes for as long as it takes to bring them to justice.”

“Coordinated cyber intrusions like those allegedly carried out by the 17 members of the Mabna Institute represent a serious threat to our national security,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Their campaign stole vast amounts of intellectual property and sensitive information, reinforcing the FBI's commitment to confront this activity head-on.  Backed by the IRGC, this operation reflects a broader, organized effort to target U.S. institutions and global partners.  No matter where these actors operate or how they attempt to hide, the FBI will persist in its efforts to disrupt this criminal activity.” 

According to the allegations contained in the S2 Indictment:(1) 

Background on the Mabna Institute

GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources.  In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, SAJJAD TAHMASEBI, SAEID HOUSHYAR, BEHZAD MESRI, a/k/a “Skote Vahshat,” MANOUCHEHR HASHEMLOO, KEYVAN FAYAZ, a/k/a “Achilles,” a/k/a “The Joker,” a/k/a “bc.monster,” AMIR BARATI, SABER SHAHBAZI BALLOJEH, ARMAN KAHZADIAN, and MOJTABA GALEKUHI, a/k/a “Mojtaba Ghaleh Koui.”  The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC.  The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.

University Hacking Campaign

The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world.  They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 178 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom.  The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities.  Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.

The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books.  The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields.  The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.

In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper).  Megapaper was operated by Falinoos Company, a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” and Gigapaper was affiliated with KARIMA.  Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.

Private Sector and Governmental and Non-Governmental Organization Hacking Campaigns

In addition to targeting and compromising universities, the defendants targeted and compromised and exfiltrated employee email accounts for at least approximately at least five U.S. federal and state government agencies, at least 42 U.S. based private sector companies, at least approximately 11 foreign companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and various governmental and non-governmental organizations within the U.S., including the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.

Eight Additional Defendants Charged in the S2 Indictment

The S2 Indictment charges eight additional defendants and describes continued efforts by the Mabna Institute to target American and international institutions.  For example, the defendants targeted Home Box Office, Inc. (“HBO”), a media and entertainment company headquartered in New York, New York. MESRI was separately charged in United States v. Behzad Mesri, 17 Cr. 689 (AJN), with hacking into HBO’s computer systems, stealing proprietary data, and then attempting to extort HBO for approximately $6 million worth of Bitcoin, a form of digital currency. HOUSHYAR, HASHEMLOO, FAYAZ, BALLOJEH, and KAHZADIAN were also directly involved in the hack of HBO’s systems along with MESRI. 

In addition, GALEKUHI, FAYAZ, and BALLOJEH participated in the Mabana Institute’s efforts to hack into private sector companies and at least two governmental entities—including through password spray attacks, obtaining unauthorized access to victim systems, and exfiltrating data—causing victims to have suffered from an excess of $20 million in costs to investigate and remediate the intrusions.  BARATI moreover was involved in tracking the progress of the spearfishing campaigns, exchanging login credentials for compromised accounts with other co-conspirators, creating targeting lists, conducting computer network reconnaissance, and crafting spearfishing messages. 

Concurrent with the unsealing of the S2 Indictment, the U.S. Department of State’s Rewards for Justice program (“RFJ”) is offering a reward of up to $10 million for information leading to the location of defendants MESRI, GALEKUHI, KAHZADIAN, FAYAZ, and BALLOJEH.  The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act. 

Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion.  More information about this RFJ reward offer is located on the Rewards for Justice website. 

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A chart containing the names, charges, and maximum penalties for the defendants is set forth below.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. McDonald praised the outstanding investigative work of the FBI.  He also thanked the Department of Justice’s Office of International Affairs.  Mr. McDonald further thanked the RFJ Program for their support.  

Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Connie L. Dang, and Adam Sowlati are in charge of the prosecution, with assistance provided by Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section. 

The charges contained in the S2 Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Naomi D. Gruchacz, announced that RODNEY GREER, a/k/a “Christian Marchand,” appeared for arraignment today in connection with a four-count Indictment charging GREER with a scheme to impersonate doctors to obtain unauthorized prescription medications on behalf of individuals who paid him.  GREER was arrested in Chicago on June 17, 2026.  This case is assigned to U.S. District Judge Arun Subramanian. 

“As alleged in the indictment, Rodney Greer impersonated and stole the identities of physicians and made false statements to pharmacies to obtain unauthorized prescription medications,” said U.S. Attorney Jamie McDonald.  “This alleged conduct put scores of individuals in danger by allowing them to access prescription medication without the evaluation or approval of a licensed physician.  The defendant now faces serious criminal charges for his alleged crimes.” 

“The misuse of a physician's personally identifiable information to fraudulently obtain GLP-1 medications is a serious crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Rodney Greer's alleged scheme not only compromises sensitive data, but also abuses systems designed to support legitimate patient care.  The FBI does not tolerate fraud in any form, and we will continue to investigate those who exploit the healthcare system and the providers.” 

“The defendant in this case allegedly orchestrated an extensive scheme that generated hundreds of thousands of dollars in prescription claims paid by federal health care programs—claims that should never have been authorized,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz.  “HHS‑OIG remains committed to working with our law enforcement partners to dismantle schemes that exploit federal health care programs and to hold accountable those who perpetrate such fraud.”

As alleged in the Indictment:(1)

Beginning in or about March 2023, GREER engaged in a scheme to impersonate physicians and make false statements to pharmacies and other third-party pharmacy benefit managers located throughout the United States in order to fraudulently obtain unauthorized prescription medications for customers in exchange for payments.   

GREER acquired personal identifying information (“PII”) for individual physicians, including their names and their national provider identification number (“NPI”).  GREER maintained handwritten lists containing physicians’ PII for approximately 60 physicians located in approximately 19 states.   

Between on or about January 4, 2023, through on or about March 9, 2026, GREER called approximately 261 Pharmacies on approximately 3,329 occasions.  Throughout that period, GREER used physicians’ PII and license information to impersonate them.  GREER falsely claimed to be a health care provider; falsely identified himself as a physician; and provided other false information to receive GLP-1 and other prescription medications.

By fraudulently inducing the provision of unauthorized medications to individuals who had not obtained prior authorization or approval for these prescription medications, GREER facilitated the unauthorized redemption of hundreds of thousands of dollars in healthcare plan benefits to the individuals who paid GREER for his services.

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GREER, 51, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; and two counts of aggravated identity theft, each of which carries a mandatory term of two years in prison.

The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. McDonald praised the outstanding work of the FBI and HHS-OIG. 

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Brandon C. Thompson and Georgia V. Kostopoulos are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.    

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.

United States Attorney for the Southern District of New York, Jamie McDonald, announced that KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” was sentenced Tuesday, August 11, by U.S. District Judge Edgardo Ramos to two years in prison for investment adviser fraud. 

“Kenneth Thom sold his social media followers the image of a successful trader when, in reality, he was a suspended broker,” said U.S. Attorney Jamie McDonald.  “He took nearly $800,000 from investors who believed he would invest their money and instead spent it on luxury goods for himself.  That deception ends with this federal prison sentence.”

According to the Indictment and other information in the public record: 

In 2011, the Financial Industry Regulatory Authority (“FINRA”) suspended THOM’s broker registration after he failed to pay an arbitration award to an investor.  THOM then reinvented himself online as a successful Wall Street trader.  Using the monikers “K$” and “K Money,” THOM described himself as a financial “luminary” and “beacon of knowledge.”  Through various social media channels, including Facebook, Instagram, and Twitch, THOM built an online following, to whom he sold trading lessons and daily text message alerts containing his trade suggestions. 

Beginning in late 2023, THOM invited members of his Facebook group to participate in “shared accounts” that THOM would manage in exchange for half of the trading profits.  THOM eventually raised nearly $800,000 from approximately 66 clients.  Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including international travel, dining, and luxury goods.  Of the $350,000 that THOM invested, he lost approximately 73% between approximately March 2024 and March 2025.  Despite these massive losses, THOM regularly published updates in his Facebook group purporting to show dramatic gains in the shared accounts. 

In January 2025, THOM changed the name of the Facebook group to “AYBABTU”—an acronym for the Internet meme “all your base are belong to us”—and stopped responding to his clients.  At the time of his sentencing, THOM still maintained three luxury vehicles: a Maserati and two Porsches.   

*                *                *

In addition to the prison term, THOM, 42, of Belleville, New Jersey, was sentenced to two years of supervised release.  THOM was also ordered to pay forfeiture and restitution to his victims, each in the amount of $724,756.09. 

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Alexander Li is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced that LUIGI NICHOLAS MANGIONE pled guilty today before U.S. District Judge Margaret M. Garnett in connection with the December 4, 2024, murder of UnitedHealthcare Chief Executive Officer Brian Thompson in Midtown Manhattan.  MANGIONE is scheduled to be sentenced on December 18, 2026. 

“Today, Luigi Mangione admitted to stalking and murdering Brian Thompson on a Manhattan street in broad daylight,” said U.S. Attorney Jamie McDonald.  “No grievance, political belief, or ideological cause can justify murder.  With today’s guilty plea, Mangione is being held accountable for a heinous crime that claimed an innocent life and drew national attention.  I commend the FBI, the NYPD, our law enforcement partners, and the dedicated prosecutors of this Office for their tireless work in securing this result.”

“Violence driven by such hostility toward opportunity and progress stands in sharp contrast to the values many Americans hold dear,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Rest assured, the FBI and our partners never stopped working to bring a killer to justice.  While a plea has been entered in this case, we know the crime has not been erased.  While nothing can ease the family's grief, we hope this brings them one step closer to closure.”

“Luigi Mangione carried out a ruthless act of violence that shocked this city, and today’s guilty plea is an important moment of accountability for this heinous crime,” said NYPD Commissioner Jessica S. Tisch.  “This case demonstrated the extraordinary work of NYPD detectives, who relentlessly pursued every lead, pairing sophisticated technology with painstaking, old-fashioned police work to identify the suspect and build the case that brought us to this day.  I want to thank all the members of the NYPD who worked tirelessly on this case, and the U.S. Attorney’s Office and the FBI for their partnership.  And to those who idolize Mangione—violence is not a cause, murder is not a message, and a killer is not a hero.”

As alleged in the Indictment and other public filings in this case:

In the months leading up to December 4, 2024, MANGIONE developed and executed a plan to kill Brian Thompson.  MANGIONE targeted Thompson because of his role as Chief Executive Officer of UnitedHealthcare.  He traveled from outside New York to New York City specifically to carry out the attack.  After arriving in the city more than a week before the murder, MANGIONE conducted surveillance on locations Thompson frequented, including the area surrounding the hotel where Thompson was staying and the venue hosting UnitedHealthcare’s investor conference. 

On the morning of December 4, 2024, MANGIONE positioned himself near the conference venue in Midtown Manhattan and waited for Thompson to arrive.  At approximately 6:45 a.m., MANGIONE approached Thompson from behind and shot him multiple times, causing Thompson’s death.  MANGIONE then fled the scene.

Five days later, on December 9, 2024, law enforcement officers arrested MANGIONE in Altoona, Pennsylvania.  At the time of his arrest, MANGIONE possessed a false driver’s license that he had previously used while in New York City.  Law enforcement also recovered a firearm and other evidence linking him to the murder.

*                *                *

MANGIONE, 28, of Maryland, pled guilty to one count of interstate stalking resulting in death, which carries a maximum potential sentence of life in prison, and one count of cyberstalking through use of interstate facilities resulting in death, which carries a maximum potential sentence of life in prison.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald praised the outstanding investigative work of the FBI’s Violent Crime Task Force, the NYPD, the Altoona Police Department in Altoona, Pennsylvania, and the Special Agents of the U.S. Attorney’s Office.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Dominic A. Gentile, Jun Xiang, Alexandra Messiter, and Thomas John Wright are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of a Complaint and Indictment charging Gilbert Bell Fernandez, a/k/a “Macho Coca,” with conspiring to import cocaine into the United States.  BELL FERNANDEZ was extradited from Costa Rica to the United States on the charges contained in the Indictment on August 13, 2026.  BELL FERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo and ordered detained pending trial.  The case has been assigned to U.S. District Judge Dale E. Ho. 

“Our Office will not stop in our efforts to disrupt international drug operations like this one,” said U.S. Attorney Jamie McDonald.   “For years, Gilbert Bell Fernandez allegedly sourced ton-quantities of cocaine from Colombia and transported this cocaine through Costa Rica for ultimate distribution in the United States and elsewhere.  Bell Fernandez’s drug organization has lost its leader.  Now, one of Costa Rica’s most notorious drug kingpins will face justice in an American courtroom for the harm he caused and sought to cause to this country.  That is because of the dedicated efforts of our prosecutors and the Drug Enforcement Administration.”

“The extradition of Gilbert Bell Fernandez to the United States demonstrates DEA’s global reach and our commitment to holding drug traffickers accountable,” said DEA Administrator Terrance C. Cole.  “Known as ‘Macho Coca,’ Bell Fernandez allegedly built a vast criminal network to move massive quantities of cocaine through Costa Rica for distribution in American communities, including New York City.  DEA and our law enforcement partners will continue to pursue those who traffic poison into our country.  We will not stop working to save American lives and we will not allow borders to shield criminals from justice.”

According to the charging documents and other public statements and records:(1)

Until his arrest, BELL FERNANDEZ was a major international narcotics trafficker and one of the most prolific cocaine traffickers in Costa Rica, which he helped develop into a major narcotics transshipment hub. BELL FERNANDEZ, who also owned and operated commercial fishing businesses in Costa Rica, controlled the distribution of ton-quantities of cocaine imported into and transiting through the Port of Limón, a seaport in the Limón Province of Costa Rica that has served as a major transshipment point for U.S.-bound cocaine. 

In or about March 2022, members of BELL FERNANDEZ’s drug organization began discussions with a DEA confidential source (“CS-1”) about the purchase of large shipments of cocaine for CS-1’s purported customers in New York and elsewhere.  During these initial conversations, BELL FERNANDEZ’s co-conspirators confirmed that BELL FERNANDEZ was the leader of the organization and could facilitate ton-quantity shipments of cocaine.   

In the months that followed, CS-1 spoke directly with BELL FERNANDEZ on multiple occasions, in person and telephonically, to negotiate the terms of their cocaine distribution partnership.  During those conversations, BELL FERNANDEZ confirmed, among other things, that he had the means to export ton-quantities of cocaine out of Costa Rica and that his organization could arrange for CS-1 to purchase a sample of the cocaine in advance of potential larger deals in the future. 

After negotiating the purchase of this sample, in or around February 2023, with BELL FERNANDEZ’s approval, a member of BELL FERNANDEZ’s organization provided CS-1 with a sample of one kilogram of cocaine in Costa Rica in exchange for approximately $6,000 in United States currency.  Following CS-1’s acquisition of the one-kilogram sample, CS-1 continued conversations with BELL FERNANDEZ and other members of BELL FERNANDEZ’s organization about the large-scale distribution partnership they had been negotiating. In early August 2023, CS-1 met again with BELL FERNANDEZ in Costa Rica to continue discussions about a potential cocaine deal.  During that meeting, BELL FERNANDEZ discussed providing CS-1 with approximately 700 kilograms of cocaine and eventually transporting that cocaine to New York City. 

In November 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned BELL FERNANDEZ.  In announcing its sanctions, OFAC described BELL FERNANDEZ as being “known not only for the volume of drugs he moves but the violence with which he operates,” noting that BELL FERNANDEZ “has played a significant role in Costa Rica’s recent transformation into a major narcotics transit hub.”  OFAC also noted that BELL FERNANDEZ was one of the “most prolific” and “most violent” traffickers in Limón.

*                *                *

BELL FERNANDEZ, 63, of Costa Rica, is charged with conspiring to import over five kilograms of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.   

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. McDonald also thanked the DEA’s Costa Rica Country Office, the Office of International Affairs of the Department of Justice’s Criminal Division, and Costa Rica’s Organismo de Investigación Judicial for their assistance in securing the arrest and extradition of BELL FERNANDEZ. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Katherine Cheng, Kaylan E. Lasky, and David J. Robles are in charge of the prosecution.

The charges contained in the Complaint and Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., and Superintendent of the New York State Police, Steven G. James, announced that on August 11 and August 13, 2026, JAMIE AND NICHOLAS ORSINI, respectively, were each sentenced to life in prison by U.S. District Judge Philip M. Halpern for one count of carjacking resulting in death and one count of participating in a conspiracy to commit carjacking in connection with the murder of JAMIE ORSINI’s ex-husband, Steven Kraft.  The ORSINIs were convicted following a two-week trial in 2024 before Judge Halpern.

“Justice has now been served in this tragic case,” said U.S. Attorney Jamie McDonald.  “In 2020, Jamie and Nicholas Orisini orchestrated a sophisticated scheme to kill Jamie Orsini’s ex-husband, Steven Kraft, and cover up their crime.  Their actions took a life, devastated a family, and left behind years of unanswered questions.  Kraft’s body has never been found, and for years, his family has been forced to live with the unimaginable pain and uncertainty of not knowing what happened to their loved one.  While no sentence can undo the loss of a life or erase the suffering endured by Kraft’s family, these sentences bring the Kraft family a measure of finality and hold Jamie and Nicholas Orsini accountable for their horrific crimes.  Our prosecutors and law enforcement partners will not stop seeking justice for victims, their families, and our communities.”

“The actions taken by Jamie and Nicholas Orsini that resulted in the death of Steven Kraft are a tragic and senseless crime,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Our hearts remain with the victims and their families as they confront this profound loss.  The FBI is steadfast in its commitment to pursuing violent crime investigations and will continue working closely with the United States Attorney’s Office for the Southern District of New York.  This investigation was the result of the dedicated work of the FBI Hudson Valley Safe Streets Task Force, whose local and state law enforcement partners play an essential role in bringing violent offenders to justice and ensuring the safety of our communities.

“This week’s sentencings send a strong message that prison is the only future for those who take the lives of others,” said New York State Police Superintendent Steven G. James.  “We hope these sentencings bring a sense of closure that the defendants will never commit a heinous crime like this again.  I commend the dedication of our members, partners at the US Attorney’s Office, and law enforcement colleagues for the justice served in this case.”

According to the Indictment, public court filings, and evidence presented at trial:

In 2020, JAMIE and NICHOLAS ORSINI plotted and executed the murder of JAMIE ORSINI’s ex-husband and the father to two of her children, Steven Kraft, as well as a sophisticated cover-up of their crime.  The murder and cover-up involved, among other things, the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence.  Before the murder, the ORSINIs purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, repeatedly practiced “dry runs” for how they would move Kraft’s car, and purchased a “burner phone” to use without law enforcement being able to trace the phone to them.  On April 28, 2020, Kraft dropped his children off at the ORSINIs’ home in Beacon, New York.  The ORSINIs killed Kraft in their home, taking his car and one of his cellphones.  In order to make it look as if Kraft left their home in Beacon alive and was killed elsewhere, NICHOLAS ORSINI drove Kraft’s car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi, while JAMIE ORSINI sent text messages to and from NICHOLAS ORSINI’s phone—which he had left at home—to pretend that NICHOLAS ORSINI never left the house that night.

After the murder, the ORSINIs destroyed evidence of their crimes—including Kraft’s body—buying a new burner phone to use while repeatedly driving to and from upstate New York, as well as creating large homemade incinerators.  JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, while hinting that perhaps something might have happened to Kraft had he gone to Newburgh after leaving her home.

If you believe you have information related to the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.

*                *               *

JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were sentenced to life in prison to be followed by five year of supervised release on count one (carjacking resulting in death, in violation of 18 U.S.C. § 2119(3)) to run concurrently with five years in prison to be followed by three years of supervised release on count two (conspiracy to commit carjacking, in violation of 18 U.S.C. § 371).

Mr. McDonald praised the outstanding work of the FBI and the New York State Police, which also supported the prosecution through trial.  He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialist Shannon Becker.

A two-count indictment was unsealed today charging 11 individuals with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China. Some individuals paid up to $100,000 per sham marriage, according to the indictment.

“This Department of Justice is rooting out fraud everywhere — including in our immigration system,” said Attorney General Todd Blanche. “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages. Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”

“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history.  As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”

“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said Director Joseph B. Edlow of U.S. Citizenship and Immigration Services (USCIS). “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them. USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”

“As alleged, this decade-long scheme turned marriage fraud into an international business model arranging countless sham marriages and causing hundreds of fraudulent Green Card applications to be submitted to United States Citizenship and Immigration Services,” said Acting Executive Associate Director John Condon of Homeland Security Investigations (HSI). “Through the Homeland Security Task Force, HSI and our partners will continue to dismantle criminal networks that undermine the rule of law, exploit federal laws, and profit from fraud.”

The defendants were arrested this morning and are expected to be arraigned today. The defendants are:

• Amy Cheng, also known as “Amy Zhou,” 72, of Brooklyn, New York;
• Xiao Mei Chan, also known as “Carmen;” 64, of Queens, New York;
• Christine Lu, also known as “Lily,” 52, of Queens;
• Jing Yan Ye, also known as “Serene,” 43, of Staten Island, New York;
• Xiao Yan Chen, also known as “Anna,” 48, of Brooklyn;
• Gang Zheng, also known as “Michael” and “Mike,” 61, of Queens;
• Anthony Cheng, 47, of Staten Island;
• Michelle Duenas, 35, of Staten Island; 
• Angela Duenas, 26, of Staten Island; 
• Sigrid Cetino, 32, of Peekskill, New York; and 
• Erika Johnson, 43, of Ossining, New York.

According to the indictment, from at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals — primarily citizens of the People’s Republic of China — and United States citizens. Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China. 

The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (Green Card) applications to U.S. Citizenship and Immigration Services (USCIS). The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers.  

Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status. Facilitators, in turn, allegedly paid participating U.S. citizens up to about $30,000 — generally in installments tied to milestones in the Green Card application process — and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited. In total, the defendants and their co-conspirators recruited hundreds of U.S. citizens to enter into sham marriages.

The defendants executed the fraud by pairing foreign nationals with U.S. citizens. The individuals would often meet for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate. Some examples are below, including a photograph of a sham marriage that took place in China:

After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies. The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers. 

The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS. Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.

At the time the defendants were arrested, law enforcement executed premises search warrants at multiple locations in New York including Sunset Park, Brooklyn, and Flushing, Queens.

The defendants have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which, if convicted, carries a maximum penalty of five years in prison. The defendants have also each been charged with one count of conspiracy to encourage the unlawful residence of aliens in the United States, which, if convicted, carries a maximum penalty of 10 years in prison.

HSI, Hudson Valley; the FBI, Safe Streets Task Force; the USCIS’s Fraud Detection and National Security Directorate; the U.S. Army Criminal Investigation Division; and the Westchester County District Attorney’s Office are investigating this case. 

Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson for the Southern District of New York are prosecuting the case.

An indictment merely contains accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Attorney General for the United States, Todd Blanche, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Director of U.S. Citizenship and Immigration Services, Joseph B. Edlow, and Westchester County District Attorney, Susan Cacace, announced today the unsealing of a two-count Indictment charging AMY CHENG, a/k/a “Amy Zhou,” XIAO MEI CHAN, a/k/a “Carmen,” CHRISTINE LU, a/k/a “Lily,” JING YAN YE, a/k/a “Serene,” XIAO YAN CHEN, a/k/a “Anna,” GANG ZHENG, a/k/a “Michael,” a/k/a “Mike,” ANTHONY CHENG, MICHELLE DUENAS, ANGELA DUENAS, SIGRID CETINO, and ERIKA JOHNSON, with conspiring, over the course of more than a decade, to orchestrate more than 1,000 sham marriages to fraudulently obtain immigration status for foreign nationals, primarily citizens of the People’s Republic of China.  10 of the defendants were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.  

“The defendants and their co-conspirators allegedly operated a nationwide and international, multimillion-dollar marriage fraud scheme, using participants to abuse United States immigration laws for their own profit,” said U.S. Attorney Jamie McDonald.  “Today’s arrests have dismantled a central component of one of the largest marriage fraud schemes charged in United States history.  As this prosecution shows, we and our law enforcement partners will relentlessly pursue those seeking to corrupt and exploit our nation’s lawful immigration system.”

“This Department of Justice is rooting out fraud everywhere—including in our immigration system,” said Attorney General Todd Blanche.  “The individuals who were arrested today allegedly orchestrated elaborate schemes to illegally obtain citizenship for foreign nationals through sham marriages.  Schemes like this are a deliberate affront to the United States and our laws and will not be tolerated under the Trump Administration.”

“For over a decade, this alleged criminal network treated our immigration system like a business opportunity—charging foreign nationals exorbitant fees, recruiting U.S. citizens into sham marriages, and manufacturing false evidence to deceive the federal government,” said HSI Acting Special Agent in Charge Pete Gizas.  “Their alleged conduct struck at the heart of a lawful process, placing personal profit above fairness, accountability, and the public’s trust.  When fraudsters game the system, they don’t just break the law—they cheat every person who plays by the rules and waits their turn, and they erode the confidence that legitimate institutions depend on to serve the public.  HSI New York, as a co-leader of the Homeland Security Task Force, is resolute in its mission to dismantle these fraud networks, protect the integrity of our institutions, and safeguard New Yorkers’ neighborhoods, communities, and livelihoods.”

“Anyone willing to lie, cheat or steal their way to legal immigration status is a direct threat to America's national security,” said USCIS Director Joseph B. Edlow.  “U.S. Citizenship and Immigration Services is aggressively pursuing marriage fraud schemes and the criminal organizations and ringleaders who profit from them.  USCIS will continue to expose fraud, defend the rule of law, and ensure immigration status is reserved for those who truly qualify.”

“Those who deliberately arrange sham marriages to circumvent our nation’s immigration laws are not only undermining the sanctity of this institution, but they are also committing a crime,” said Westchester County District Attorney Susan Cacace.  “This complex investigation, which our office proudly helped uncover, was worked in partnership with HSI, the FBI, and the U.S. Attorney’s Office for the Southern District of New York.  This case demonstrates the power and importance of strong cooperation between all law enforcement agencies.”

According to the Indictment:(1)

From at least 2016 through July 2026, the defendants operated a nationwide and international marriage fraud network that arranged sham marriages between foreign nationals—primarily citizens of the People’s Republic of China—and United States citizens.  Although based principally in New York City, the network allegedly arranged sham marriages throughout the United States and overseas, including in Connecticut, Massachusetts, Pennsylvania, Kentucky, Tennessee, Georgia, Florida, Vanuatu, and China. 

The network included facilitators who oversaw the scheme and identified foreign-national customers; recruiters who found willing United States citizens and helped ensure their continued participation; and assistants who prepared immigration paperwork and coordinated the submission of fraudulent lawful permanent residency (“Green Card”) applications to United States Citizenship and Immigration Services (“USCIS”).  The scheme also relied on marriage officiants, attorneys, tax preparers, insurance providers, and other service providers.  Foreign nationals paid facilitators as much as approximately $100,000 for a sham marriage and assistance obtaining lawful permanent resident status.  Facilitators, in turn, allegedly paid participating United States citizens as much as approximately $30,000—generally in installments tied to milestones in the Green Card application process—and paid recruiters commissions of as much as approximately $5,000 for each citizen recruited.  In total, the defendants and their co-conspirators recruited hundreds of United States citizens to enter into sham marriages:

The defendants executed the fraud by pairing foreign nationals with United States citizens—who often met for the first time immediately before obtaining a marriage license, arranging sham wedding ceremonies, and staging photographs designed to make those marriages appear legitimate.  Some examples are below, including a photograph of a sham marriage that took place in China:

After the ceremonies, scheme participants manufactured evidence to make the marriages appear genuine, including by staging additional photographs, opening joint financial and utility accounts, filing joint tax returns, and obtaining insurance policies.  The defendants and their co-conspirators then prepared and submitted Green Card applications containing materially false statements and, when interviews with USCIS were required, coached the marriage participants on how to conceal the true nature of their relationships and provide false answers to immigration officers. 

The defendants caused at least hundreds of fraudulent Green Card applications and supporting documents to be submitted to USCIS.  Based on the scale and duration of the scheme, the defendants’ network is believed to have collected tens of millions of dollars from foreign nationals seeking lawful permanent resident status.

At the time the defendants were arrested, law enforcement executed premises search warrants at locations in Sunset Park, Brooklyn, Flushing, Queens, and Staten Island.

*                *                *

AMY CHENG, 72, of Brooklyn, New York, XIAO MEI CHAN, 64, of Queens, New York, CHRISTINE LU, 52, of Queens, New York, JING YAN YE, 43, of Staten Island, New York, XIAO YAN CHEN, 48, of Brooklyn, New York, GANG ZHENG, 61, of Queens, New York, ANTHONY CHENG, 47, of Staten Island, New York, MICHELLE DUENAS, 35, of Staten Island, New York, ANGELA DUENAS, 26, of Staten Island, New York, SIGRID CETINO, 32, of Peekskill, New York, and ERIKA JOHNSON, 43, of Ossining, New York, have each been charged with one count of conspiracy to commit marriage fraud and immigration fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to encourage the unlawful residence of aliens in the United States, which carries a maximum sentence of 10 years in prison.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. McDonald thanked HSI, Hudson Valley; the Federal Bureau of Investigation, Safe Streets Task Force; the USCIS Fraud Detection and National Security Directorate; the United States Army Criminal Investigation Division; the Westchester County District Attorney’s Office; the United States Attorney’s Office for the Middle District of Florida; and Homeland Security Investigations, Jacksonville for their outstanding investigative work. 

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jake Sidransky and Reyhan Watson are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that Joshua Schuster was sentenced to four years in prison for his role in a scheme to defraud investors in large real estate development projects located in New York City.  SCHUSTER pled guilty on February 27, 2026, before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.    

“To preserve the integrity of and confidence in our financial markets, this Office will work tirelessly to prosecute fraud and protect investors in these markets,” said U.S. Attorney Jamie McDonald.  “Joshua Schuster betrayed the trust of investors who believed their money would fund real estate projects throughout New York.  Instead, he stole more than $13 million to finance his own lifestyle and repay earlier investors in a Ponzi-like scheme.  As a result of his lies and deception at his investors’ expense, Schuster has been sentenced to a term in federal prison.”

According to the Indictment, plea agreement, and statements made in Court: 

Over a five-year period, SCHUSTER engaged in a scheme to defraud investors who had entrusted him with millions of dollars to finance real estate development projects in New York City. SCHUSTER induced investors to contribute capital to his projects by promising them equity in high-end real estate developments, and by representing that investor funds would be used exclusively for the acquisition and development of specific New York-based projects.  Instead, SCHUSTER misappropriated in excess of $13 million dollars in investor money to fund his lifestyle, including over $1 million in personal credit card payments and hundreds of thousands of dollars in gambling losses; to repay earlier investors in a Ponzi-like fashion; and to cover unrelated business obligations and payroll. 

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In addition to the prison term, SCHUSTER, 42, of Boca Raton, Florida, was sentenced to three years of supervised release and will be required to pay more than $13,830,665 in forfeiture.  SCHUSTER will also be required to pay restitution, which will be determined at a later date.   

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation.  Mr. McDonald also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against SCHUSTER, for its assistance and cooperation in the investigation.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of an Information charging THEODORE WOO, the former CFO of a hedge fund, with securities fraud. The charge results from WOO’s yearslong scheme to steal from the fund by submitting and approving falsified invoices, causing the fund to transfer money directly into accounts controlled by WOO, and incurring unauthorized personal expenses on credit cards paid by the fund. WOO pled guilty today before U.S. Magistrate Judge Valerie Figueredo and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on November 18, 2026.

“For years, Theodore Woo flagrantly abused his position of trust and brazenly stole from his employer to line his own pockets,” said U.S. Attorney Jamie McDonald.  “To do so, Woo took advantage of his position as CFO, misled his employer, and falsified documents.  Lies and deception are not worth the risk of criminal prosecution.  Today’s charge and plea are indicative of this Office’s commitment to holding C-suite executives accountable when they engage in fraud.”    

“Woo’s arrest shows that greed and deceptive tactics do not pay,” said USPIS Inspector in Charge Ketty Larco-Ward.  “For years Woo allegedly cheated this company out of millions and used this money as his own personal piggy bank.  The United States Postal Service will continue to investigate and prosecute this type of illegal activity, as we seek to protect the public from financial fraudsters.”

According to the Information: 

Beginning shortly after he began working for the fund and continuing until his termination in March 2026, WOO embezzled millions of dollars from the fund through a series of fraudulent transactions, including making millions of dollars in fraudulent payments to entities controlled by WOO and spending thousands of dollars on unauthorized personal expenses using credit cards paid by the fund. 

As the CFO, WOO handled back-office tasks for the fund and had the authority to authorize the fund’s administrator to process reimbursement requests.  In that capacity, WOO instructed the fund administrator to make millions of dollars in payments to two entities, TWDRR LLC and MGTW LLC, for claimed “Research Consulting Services.”  WOO also sent invoices from those two entities that falsely represented that they had rendered services for the fund.  In actuality, WOO controlled both entities, and neither entity had performed any service for the fund.  To further conceal his theft, WOO falsely claimed to the fund’s external auditor that MGTW LLC was an independent research consulting firm engaged by the fund to develop short investment ideas on a project-by-project basis.

WOO also had the authority to effectuate transfers of cash from the fund to third parties, as the CFO.  Over the course of his employment with the fund, WOO caused over 100 fraudulent transfers from the fund to a corporate entity controlled by WOO and to bank accounts in WOO’s name.

Finally, while serving as CFO, WOO opened and controlled multiple credit cards in the name of the fund, and charged unauthorized personal expenses to those cards, including thousands of dollars in charges to adult entertainment establishments and international vacations.

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WOO, 49, of Miami, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald thanked the USPIS for its outstanding work.  Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office’s Securities and Commodities Task Force.  Assistant U.S. Attorneys Sarah Mortazavi and Christy Slavik are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Director in Charge of the Coast Guard Investigative Service (“CGIS”), Josh Packer, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that MANUEL HERNANDEZ has been charged with negligently causing the death of a five-month-old infant and a 27-year-old woman, after the vessel HERNANDEZ was piloting capsized in New York Harbor.  HERNANDEZ was presented today before U.S. Magistrate Judge Valerie Figueredo. 

“Federal regulations and maritime safety protocols exist to protect the lives and wellbeing of passengers on commercial vessels,” said U.S. Attorney Jamie McDonald.  “The defendant allegedly flouted those regulations when he transported paying customers on a commercial vessel without appropriate licenses, overcrowded the vessel, and took on a five-month-old infant passenger, with no infant life vests onboard.  We mourn the tragic drowning deaths of the infant and her mother and urge would-be tour operators and the public to observe all safety protocols for commercial vessels.” 

“Illegal charter operations gamble with human life, and in this case, the alleged conduct led to an unthinkable tragedy,” said Coast Guard Investigative Service Assistant Director Josh Packer.  “As the Coast Guard’s criminal investigative agency, CGIS brings unmatched maritime subject-matter expertise coupled with federal law enforcement authority.  Working with our federal, state, and local partners, we will continue to investigate those who ignore passenger vessel safety laws and put the public in danger.”

“As alleged in the complaint, Manuel Hernandez showed a complete disregard for the safety of his passengers when he piloted an over-capacity boat without a license that capsized in the New York Harbor,” said NYPD Commissioner Jessica S. Tisch.  “This tragedy could have been prevented, and now a family is left to grieve the unimaginable loss of a mother and her five-month-old daughter because of his negligence.  I am grateful to our NYPD Harbor and Aviation Units for their swift response and to the U.S. Attorney’s Office for the Southern District of New York for bringing these charges.” 

According to the allegations contained in the Complaint:(1)

On or about August 8, 2026, HERNANDEZ was piloting a  Yamaha AR210 (the “Vessel”) when it capsized in New York Harbor, resulting in the deaths of a five-month-old infant (“Victim-1”) and a 27-year-old woman (“Victim-2”).  At the time of the capsizing, HERNANDEZ was the pilot and operator of the Vessel and conducting a tour for paying customers that had been arranged through a tour operations company.

HERNANDEZ’s negligent actions and omissions caused the capsizing and deaths of Victim-1 and Victim-2.  At the time of the capsizing, among other things: (i) HERNANDEZ operated the Vessel with 14 people onboard, exceeding the Vessel’s maximum allowable capacity of 10 people; (ii) HERNANDEZ knowingly operated the Vessel with an infant onboard, knowing that the infant was not wearing a personal flotation device (“PFD”) and that the Vessel was not equipped with any child- or infant-sized PFDs; (iii) HERNANDEZ had not obtained a Merchant Mariner Credential, a required USCG certification to operate the Vessel with paying customers onboard; (iv) HERNANDEZ operated the Vessel without a valid USCG Certificate of Inspection, which is required for a vessel to operate with paying customers onboard, and, in fact, the Vessel was of a type and size that made it ineligible to receive a COI for the type of operation conducted by HERNANDEZ.

All 14 people onboard the Vessel were thrown overboard during the capsizing.  Shortly after the capsizing, other boats, including commercial vessels and vessels operated by the NYPD, the USCG, and the New York City Fire Department, responded to the scene to render emergency assistance.  11 passengers and HERNANDEZ were recovered in varying medical conditions and survived the capsizing.  The bodies of Victim-1 and Victim-2 were recovered in the water by members of the NYPD and USCG.  Both Victim-1 and Victim-2 were unresponsive, received CPR from emergency responders, and were immediately transported to a hospital in Brooklyn.  Upon arrival at the hospital, both Victim-1 and Victim-2 were pronounced deceased by medical personnel.  A photo of the capsized Vessel being recovered from the water is below: 

Please report any illegal passenger charters to the USCG at https://www.p3tips.com/878.

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HERNANDEZ, 46, of Manville, New Jersey, is charged with two counts of misconduct and neglect of a ship officer resulting in death, each of which carries a maximum sentence of 10 years in prison. 

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald praised the outstanding work of the CGIS and the NYPD.

This case is being handled by the Office’s General Crimes Unit.  Special Assistant U.S. Attorney Andrew Stahl is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described therein should be treated as an allegation. 

Sean S. Buckley, Deputy United States Attorney, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced that TAJ TARSHA, the founder of Few and Far Limited (“Few and Far”), has been indicted for securities and wire fraud for defrauding investors of the crypto startup he founded by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds.  TARSHA was previously arrested on June 6, 2026.  The case has been assigned to U.S. District Judge Lewis A. Kaplan.

“As alleged, Taj Tarsha raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit,” said Deputy United States Attorney Sean S. Buckley.  “Investors are entitled to the truth when choosing to make an investment, and this Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain.”

“Taj Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Protecting the integrity of our financial markets is a priority, and the FBI remains steadfast in its commitment to conducting thorough and fact-driven investigations into potential financial offenses.”

According to the Indictment:(1)

TARSHA was the founder and sole equity owner of Few and Far, a startup that claimed to be developing a decentralized marketplace for non-fungible tokens (“NFTs”).  Beginning in February 2022, TARSHA solicited investments in Few and Far through Simple Agreement for Future Tokens (SAFTs), under which investors paid upfront for rights to receive FAR tokens—a proprietary token meant to be integrated into the marketplace—at a later date.  The offering materials promised investors that their funds would be used to advance the development of the Few and Far marketplace and the FAR tokens.  Through these sales, TARSHA raised over $10 million from the sale of 95 million FAR tokens to at least 67 investors.

Almost immediately, however, TARSHA began misappropriating investor funds for his personal use, including gambling at an online casino and purchasing speculative cryptocurrencies.  TARSHA also siphoned nearly a million dollars of investor funds under the pretext of legitimate compensation in the form of two bonuses—which he deliberately hid from investors and a co-founder—and a high salary that he acknowledged was unreasonable in light of Few and Far’s lack of product and “zero revenue.”

In June 2023, an audit uncovered the misappropriation.  TARSHA falsely told investors that the bonuses were tied to predetermined FAR token presales targets and all transactions were done for the benefit of Few and Far, and he claimed all investor funds were still needed to complete the company’s mission.  In reality, he had fired nearly all staff and instructed the remaining contractor to do work that merely created the appearance of continued development of the marketplace.  For at least another year, he used investor funds for personal expenses, including cryptocurrency purchases, a Miami condominium loan and interior design services, and his DJ hobby.  When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading. 

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TARSHA, 34, of Miami, Florida, is charged with securities fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Buckley praised the outstanding work of the FBI.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation. 

United States Attorney for the Southern District of New York, Jamie McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today that VICTOR ALVELO has been charged with possessing approximately thousands of images and videos depicting child pornography, including images that depict pre-pubescent children engaging in sexually explicit conduct.  ALVELO was arrested yesterday and presented before U.S. Magistrate Judge Gary Stein in Manhattan federal court.

“Victor Alvelo, the General Superintendent of the New York City Department of Sanitation (‘DSNY’), is accused of possessing thousands of images of graphic child sexual abuse,” said U.S. Attorney Jamie McDonald.  “Sexual abuse of children inevitably leads to irreparable harm to those innocent and vulnerable victims.  Our Office is committed to pursuing justice against those who commit these unfathomable acts.  Together with our partners at HSI and the NYPD’s Computer Crimes Squad, we will work tirelessly to detect predators, prosecute them, and protect our community’s children.

“As a former senior public official, Victor Alvelo allegedly betrayed the confidence placed in him by the city and the public, even brazenly using his government-branded clothing to store files containing material that no person should ever possess,” said HSI New York Acting Special Agent in Charge Pete Gizas.  “Those who seek out and keep child sexual abuse material perpetuate the abuse of children and fuel a predatory market built on their exploitation.  HSI New York will continue to stand shoulder to shoulder with our law enforcement partners to identify offenders, pursue justice, and safeguard our community’s children, vulnerable populations, and the public at-large.” 

“Victor Alvelo allegedly possessed thousands of disturbing images of child pornography, including victims as young as 12 years old,” said NYPD Commissioner Jessica S. Tisch.  “The NYPD will be relentless in stopping predators who seek to exploit and harm children.  I thank our investigators, including the NYPD’s Computer Crimes Squad, and law enforcement partners for finding this illegal and vile material, and working to hold this perpetrator accountable.”  

According to the allegations contained in the Complaint:(1) 

ALVELO served as a General Superintendent of the DSNY until his retirement in or about August 2025.  From at least in or about August 2022 through on or about August 3, 2026, ALVELO possessed approximately thousands of images and videos depicting child pornography on devices within his residence.  The child pornography files were found in, among other places, a USB flash drive in the front pocket of a jacket bearing DSNY insignia inside ALVELO’s residence.

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ALVELO, 61, of the Bronx, New York, is charged with one count of possessing child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age, which carries a maximum sentence of 20 years in prison.  

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. McDonald praised the outstanding work of HSI, including the Child Exploitation Investigations Team, the United States Postal Inspection Service, and the NYPD Computer Crimes Squad.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Paulena B. Prager is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that PERRY FREEMAN was sentenced to 292 months in prison by U.S. District Judge Kenneth M. Karas for distributing fentanyl that resulted in the death of a Westchester County resident, conspiring to distribute crack cocaine, and illegally possessing ammunition.  On February 11, 2026, FREEMAN pled guilty before U.S. Magistrate Judge Andrew E. Krause. 

“Perry Freeman, a recidivist drug dealer, sold fentanyl to a victim who died shortly after taking the drugs,” said U.S. Attorney Jamie McDonald.  “This Office will not rest until the public is safe and that those who peddle this poison have been brought to justice, as Perry Freeman now has.”

According to the charging documents and statements made in public filings and public court proceedings:

On or about November 10, 2021, FREEMAN sold fentanyl to his victim, a 37-year-old man. 

Shortly thereafter, the police responded to a report of a burning car in a parking lot in the Town of Mohegan Lake, New York, approximately a three-minute drive from FREEMAN’s apartment building.  They found a Ford Focus on fire; the victim was in the driver’s seat with his foot on the accelerator pedal.  After the fire department put the fire out, the victim—who was dead—was pulled out.  Investigators determined that the car had caught fire after overheating while the accelerator pedal was depressed for an excessive period of time while the car was in park, i.e., while the victim was passed out in the driver’s seat with his foot on the pedal.

The Westchester County Medical Examiner’s Office, which is part of the Westchester Department of Laboratories and Research, performed an autopsy on the victim.  The victim had lethal levels of both fentanyl and norfentanyl (a metabolite of fentanyl) in his blood, and there was some darkening of the victim’s lungs, which indicated smoke inhalation before his death.  The victim’s cause of death was certified as both acute fentanyl intoxication and accident.

In addition, FREEMAN conspired to distribute crack cocaine over a period of years and possessed five shotgun shells in his apartment despite being prohibited from doing so due to multiple prior felony convictions, including convictions for narcotics offenses in 2008, 2012, 2016, and 2022. 

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In addition to the prison sentence, FREEMAN, 40, of Mohegan Lake, New York, was sentenced to five years of supervised release.

Mr. McDonald praised the outstanding investigative work of the Drug Enforcement Administration and the Yorktown Police Department for their assistance in the investigation.

The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Michael D. Maimin and Ben Arad are in charge of the prosecution.

A three-count complaint was unsealed today charging Mohammad Yousef Hasna, also known as “Orhan Korkmaz” and “Abu al-Baraa,” 45, of Istanbul, Turkey, with conspiring to provide material support to Hamas, a U.S. designated foreign terrorist organization (FTO), and related terrorism financing charges. As alleged, Hasna used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions. Hasna was arrested in the United Kingdom today.

“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg. “Hamas cannot function without injections of money through its illicit financial networks. The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”

“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid. Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”

“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division. “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants. The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”

According to the allegations contained in the complaint, Hasna is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”). In that role, Hasna allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas. As alleged, Hasna worked closely with senior Hamas leader Ghazi Hamad (Hamad), a member of Hamas’s governing body known as the Politburo and the Minster for the Ministry of Social Development in Gaza (MoSD), a putative governmental agency that is controlled by Hamas. 

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror. On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000-armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages. 

Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024. The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025. 

Since at least 2023, Hasna and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by Hasna (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands. In coordination with Hamad and at Hamad’s direction, Hasna allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad. As part of this scheme, Hasna and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by Hasna; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control. 

Hasna is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum penalty of 20 years in prison.

A federal district judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors. 

The Counterterrorism Section of the Department of Justice’s National Security Division thanks the U.K. authorities and the Israeli Security Agency for their assistance with this investigation. The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance.

This case is being handled by the Southern District of New York’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section of the Department of Justice’s National Security Division.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General for National Security, John A. Eisenberg, Assistant Director in Charge of the Counterterrorism Division of the Federal Bureau of Investigation (“FBI”), Jarod Brown, and Assistant Director in Charge of the New York Field Office of the FBI, James C. Barnacle, Jr., announced the unsealing of a three-count Complaint charging MOHAMMAD YOUSEF HASNA, a/k/a “Orhan Korkmaz,” a/k/a “Abu al-Baraa,” a Turkish resident, with conspiring to provide material support to Hamas, a U.S.-designated foreign terrorist organization (“FTO”), and related terrorism financing charges.  As alleged, HASNA used his senior role at a purported global humanitarian organization to coordinate directly with Hamas’s senior leadership regarding the delivery of funds and supplies to Gaza, and the distribution of those funds and supplies at Hamas leadership’s instructions.  HASNA was arrested in the United Kingdom today and ordered detained pending extradition proceedings.

“Mohammad Hasna is alleged to have abused his position as the global director of a purported humanitarian organization to raise money and provide funds and supplies to Hamas, a brutal terrorist organization responsible for the murders of dozens of Americans and over a thousand other innocent victims, including as part of the heinous atrocities of October 7,” said U.S. Attorney Jamie McDonald.  “Hasna worked closely with Hamas’s senior leadership to deliver supplies, food, funding, and other materials to terrorists under the guise of humanitarian aid.  Our arrest of Mohammad Hasna demonstrates our commitment to dismantling Hamas’s illicit global financing networks and the sham charities that support terrorist organizations and their violent aims using the lie of philanthropy.”

“The money that flows from sham charities like the one described in the complaint fuels Hamas’s terrorist activities, including the atrocities the group committed on October 7,” said Assistant Attorney General for National Security John A. Eisenberg.  “Hamas cannot function without injections of money through its illicit financial networks.  The National Security Division will continue to work tirelessly to disrupt Hamas’s operations, including through the prosecutions such as this.”

“The accused allegedly used a purported humanitarian aid organization to raise funds and provide financing and supplies to Hamas, a ruthless international terrorist organization,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division.  “According to the criminal complaint, the defendant coordinated his actions closely with a senior leader of Hamas and knew the resources were going to that group rather than to needy non-combatants.  The FBI is committed to cutting off funding and other assistance to terrorist organizations and will continue to work closely with our U.S. government and international partners to present a united front against global terrorism.”

“Mohammad Hasna allegedly used a charity to funnel millions of dollars in aid to Hamas—a designated terrorist organization responsible for countless terrorist attacks, death, and destruction around the world,” said FBI New York Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Joint Terrorism Task Force continues to fight for peace by working with our partners to identify threats to the United States and our allies.”

According to the allegations contained in the Complaint:(1)

HASNA is the global director of a purported international charity registered in the United Kingdom (the “Sham Charity”).  In that role, HASNA allegedly provided financing and commodities to Hamas, including by coordinating extensively with individuals at the highest levels of Hamas.  In particular, and as alleged, HASNA worked closely with senior Hamas leader Ghazi Hamad (“Hamad”), a member of Hamas’s governing body known as the Politburo and the Minister for the Ministry of Social Development in Gaza (“MoSD”), a putative governmental agency that is controlled by Hamas. 

Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization by the United States since 1997.  From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad.  Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.  On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date (the “October 7 Hamas Massacres”) when Hamas sent more than 2,000 armed fighters into farms and towns in southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of 251 hostages. 

Following the October 7 Hamas Massacres, in its disclosures to UK authorities, the Sham Charity reported that its total gross income nearly doubled from approximately $41.8 million USD in fiscal year 2023, to approximately $81.56 million USD in fiscal year 2024.  The Sham Charity represented that it spent approximately $91 million on charitable activities in the fiscal year ending July 31, 2025. 

Since at least 2023, HASNA and Hamad coordinated the delivery of purported humanitarian aid organized by or allocated to the Sham Charity into Gaza for Hamas’s benefit, repeatedly coordinating the delivery of supplies, food, and other items by HASNA (under the guise of humanitarian aid from the Sham Charity) directly into Hamad’s and Hamas’s hands.  In coordination with Hamad and at Hamad’s direction, HASNA allegedly arranged (1) deliveries of cash to Hamad; (2) the procurement of supplies for import to Gaza; (3) transportation of supplies into Gaza by truck from Egypt and elsewhere; (4) deliveries to warehouses controlled by the Sham Charity or by MoSD, according to Hamad’s instructions; and (5) distribution of those supplies to lists of recipients identified by Hamad.  As part of this scheme, HASNA and Hamad concealed where the supplies were being delivered or stored, including by misrepresenting that supplies were being delivered to MoSD when in fact they were being delivered to warehouses controlled by HASNA; having supplies delivered initially to MoSD but then redistributed to the actual receiving parties; and taking pictures and videos of the supplies that omitted any signage inside the warehouses that would reveal their location or control. 

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HASNA, 45, of Istanbul, Turkey, is charged with conspiring to provide material support to Hamas, conspiring to finance terrorism, and financing terrorism, each of which carries a maximum sentence of 20 years in prison.

The statutory maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

Mr. McDonald praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force and Washington Field Office.  Mr. McDonald also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, our U.K. partners, and the Israeli Security Agency for their assistance with this investigation.  The Justice Department’s Office of International Affairs and the United Kingdom’s law enforcement authorities provided significant assistance. 

This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Sarah L. Kushner, Michael D. Lockard, and Juliana N. Murray are in charge of the prosecution, with assistance from Alicia Cook of the Counterterrorism Section.

The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jamie McDonald, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office (“DOE OIG”), Jamila Davis, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service, Ketty Larco-Ward, announced today that NYDIRA ADAMS a/k/a “Nadira Adams,” a/k/a “Nadira Adams-McMillan,” was sentenced to two years in prison for carrying out a scheme in which she charged federal student loan borrowers to submit documents containing misrepresentations and false statements to the United States Department of Education to take advantage of the Public Service Loan Forgiveness program. ADAMS’s scheme sought to cause the Department of Education to forgive over $6 million in federal student loan debt based on lies, misrepresentations, and falsehoods.  The defendant pled guilty on April 30, 2026, before U.S. District Judge Denise L. Cote, who imposed today’s sentence.

“Nydira Adams defrauded the Department of Education out of millions of dollars and preyed upon individuals seeking relief from federal student loan debt,” said U.S. Attorney Jamie McDonald.  “Through lies, misrepresentations, and false documents, Adams abused the Public Service Loan Forgiveness program—a federal program intended to benefit individuals who dedicate at least 10 years of their careers to public service or non-profit work. And she did so to enrich herself. Today’s sentencing sends a clear message: individuals who swindle the Government and taxpayer-funded programs will be held accountable.”  

“Nydira Adams thought she could game the system and would not get caught, but she was wrong,” said DOE OIG Special Agent in Charge Jamila Davis.  “The OIG will continue to work with our law enforcement partners to aggressively pursue those who abuse the Public Service Loan Forgiveness program or any Federal education program for their own selfish purposes.  America’s taxpayers and students deserve nothing less.”

“Through lying, cheating, and manipulation, Ms. Adams devised a scheme to defraud the Department of Education and her clients by depicting herself as someone who held proprietary information on DOE programs, cheating those who truly needed student loan forgiveness and other assistance from the Department of Education,” said USPIS Inspector in Charge Ketty Larco-Ward.  “Her actions are unconscionable and today’s sentence sends a message, that no matter who you claim to be, when you lie and steal from the public, postal inspectors and their law enforcement partners will be there to bring you to justice for your criminal activity.”

According to court documents, statements made in court, and evidence presented during the sentencing:

From at least in or about March 2023 through at least in or about January 2025, Adams held herself out as the “Student Loan Default Guru” and operated a business under the same name.  In reality, AdAMS used misrepresentations, false statements, and false documents to deceive the Department of Education into forgiving federal student loans issued to borrowers who paid Adams thousands of dollars for her purported services. On multiple occasions, Adams knowingly and intentionally caused applications for Department of Education relief programs to be submitted which contained falsehoods pertaining to the borrowers’ eligibility for the relief programs. Among other falsehoods, ADAMS claimed that one California-based borrower worked full-time at a New-York-based religious institution and falsely represented that another borrower worked full-time for a public school district.  Adams’s scheme resulted in an intended loss of over $6 million to the Department of Education.       

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In addition to the prison term, ADAMS, 38, of Pensacola, Florida, was sentenced to three years of supervised release. 

Mr. McDonald praised the outstanding investigative work of the DOE OIG—Eastern Regional Office; the U.S. Postal Inspection Service, New York; and the Special Agents assigned to the United States Attorney’s Office for the Southern District of New York. 

 This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.  

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the arrests of CATORA NOEL, DARREN STEPHENSON, and IMANI-KAI BROWN, who are charged with stealing the personal identifying and financial information of dozens of victims as part of a conspiracy to fraudulently take over those victims’ bank accounts and initiate over a million dollars in unauthorized wire transfers and ATM withdrawals.  NOEL and STEPHENSON were arrested in Brooklyn, New York, this morning and presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.  BROWN was arrested today in Miami, Florida, and will be presented tomorrow in the Southern District of Florida before U.S. Magistrate Judge Edwin G. Torres.

“As alleged, Noel, Stephenson, and Brown engaged in a coordinated scheme to defraud financial institutions and steal over $1.6 million from the bank accounts of dozens of hardworking New Yorkers,” said U.S. Attorney Jamie McDonald.  “As part of this scheme, Stephenson exploited his employment at a bank to feed sensitive customer information to his co-defendants, who intercepted bank debit cards and posed as bank customers over the phone and in person.  Thanks to the tireless efforts of our law enforcement partners, this insider scheme has been disrupted.”

“The co-defendants spent years targeting and exploiting dozens of U.S. businesses and innocent victims, stealing more than $1.6 million through compromised personal and confidential information,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI remains relentless in our mission to hold accountable and impose repercussions on those who prey on our country and our communities through fraudulent and predatory schemes.”

 As alleged in the Complaint:(1)

From at least in or about July 2022 through in or about September 2024, NOEL, STEPHENSON, and BROWN participated in an identity theft scam and related fraud operation involving primarily a bank with multiple locations in the New York metropolitan area (“Victim Institution-1”). Through the fraud scheme, one or more of the participants, including NOEL, intercepted new or replacement bank debit cards that Victim Institution-1 mailed to its customers. 

The defendants unlawfully obtained customers’ bank debit cards by stealing bank debit cards from mail deposits and placing recorded calls to banks, impersonating customers by providing the customer’s name, personal identifying information (“PII”), and debit card number, and requesting that the bank mail a debit card for the customer’s account to an address accessible to the defendants or their co-conspirators.  NOEL, STEPHENSON, and BROWN communicated through, among other means, text messages and an encrypted messaging application and exchanged the information, including names, PII, and bank card and account numbers, of bank customers. STEPHENSON, a former Victim Institution-1 employee, used his privileged access to customer account information to steal customer PII and provide it to his co-conspirators in furtherance of the scheme.

Among other things, NOEL then posed as bank customers of Victim Institution-1 to conduct unauthorized and fraudulent transactions, including wire transfers, teller withdrawals, and automated teller machine (“ATM”) withdrawals.   Specifically, NOEL posed as bank customers by calling and visiting Victim Institution-1, providing the customer’s PII and account information, and requesting a wire transfer or withdrawal of funds from the customer’s Victim Institution-1 account to another bank account.  Alternatively, NOEL would use the intercepted bank cards to conduct fraudulent withdrawals from ATM machines.

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NOEL, 42, and BROWN, 33, both of Brooklyn, New York, and STEPHENSON, 41, of Valley Stream, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.  NOEL is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison. 

The statutory minimum and maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. McDonald praised the outstanding investigative work of Operation Riptide of the FBI New York Field Office and Cyber Crimes Task Force, as well as the New York City Police Department and U.S. Customs and Border Protection.

This action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people.  Last year, Americans reported over $20 billion in losses to cybercrime, a 26% single-year increase.  Operation Riptide is the FBI’s sustained enforcement response to that threat.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Dana R. McCann is in charge of the prosecution.

The charges contained in the Complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the Complaint to date constitutes only allegations, and every fact described herein should be treated as an allegation.

Jamie McDonald has assumed the role of United States Attorney for the Southern District of New York.  Earlier today, Judge Laura Taylor Swain, Chief District Judge for the Southern District of New York, informed the Office that the Court has appointed Mr. McDonald to serve as United States Attorney for the Southern District of New York, pursuant to 28 U.S.C. § 546(d), upon U.S. Attorney Jay Clayton’s resignation. Yesterday, Mr. Clayton was confirmed by the Senate to serve as Director of National Intelligence.  Mr. Clayton tendered his resignation as U.S. Attorney, effective earlier today.  Mr. McDonald was sworn in as the U.S. Attorney by Chief Judge Swain. 

Sean S. Buckley will continue in his role as Deputy United States Attorney, Amanda Houle will continue in her role as Chief of the Criminal Division, and Jeff Oestericher will continue in his role as Chief of the Civil Division as contemplated in the transition announcement of July 8, 2026.

Mr. McDonald previously served in the Office as an Assistant United States Attorney in the Criminal Division until 2017.  In that role, Mr. McDonald participated in significant organized crime, white collar, and violent crimes prosecutions, including those of senior members of the Genovese Organized Crime Family; the sitting New York State Assembly Speaker, Sheldon Silver; and a 48-defendant rival street gangs case.

From 2017 to 2020, Mr. McDonald served as the Director of Enforcement at the U.S. Commodity Futures Trading Commission (CFTC), where he had overall responsibility for all aspects of the CFTC’s enforcement program, including its investigations, litigations, and market surveillance activities.  Under his leadership, the agency prioritized cases involving market manipulation, other forms of market abuse, and fraud, as well as the pursuit of parallel actions with the Department of Justice.  Notably, during the last year of Mr. McDonald’s time at the CFTC, the agency brought an unprecedented number of enforcement actions. 

Following his tenure at the Southern District of New York and the CFTC, Mr. McDonald served as a Partner at Sullivan & Cromwell LLP where he was Co-Head of both the firm’s Securities & Commodities Investigations Practice and its Commodities, Futures and Derivatives Group.  While at Sullivan & Cromwell, Mr. McDonald also served as an Adviser to the American Law Institute’s Principles of Compliance, Risk Management, and Enforcement.  Mr. McDonald previously served as a Visiting Scholar at Harvard Business School and as a Senior Fellow at New York University Law School’s Program on Corporate Compliance and Enforcement.

Earlier in his career, Mr. McDonald served as a law clerk to Chief Justice John G. Roberts, Jr., of the U.S. Supreme Court and Judge Jeffrey S. Sutton, Jr., of the U.S. Court of Appeals for the Sixth Circuit.  From 2008 to 2009, Mr. McDonald served as a Deputy Associate Counsel in the Office of the White House Counsel.

Originally from Oklahoma, Mr. McDonald graduated from the University of Virginia School of Law and from Harvard College.  

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MATTHEW MELTON was sentenced to 51 months in prison for committing securities fraud by running a Ponzi scheme.  MELTON pled guilty in April 2026 to securities fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.

“Matthew Melton sold investors on a sophisticated trading strategy and guaranteed extraordinary returns,” said U.S. Attorney Jay Clayton.  “In reality, the supposed algorithm did not exist, and he used investor money to fund his lifestyle and sustain his scheme before fleeing the country.  Our Office and our partners are committed to holding financial fraudsters personally accountable, and if you defraud our retail investors, we will bring you to justice.  In the past 18 months, our Office has criminally charged 27 CEOs and corporate leaders with fraud, charged 12 individuals with insider trading, and doubled the number of insider trading investigations year over year.”

According to the Indictment and statements made in public filings and public court proceedings:

MELTON promoted an investment vehicle he called “Price Physics,” which purported to invest in futures contracts using a proprietary trading algorithm.  He promised investors guaranteed returns of up to 12% per month, of which he said he would keep only 2% as compensation.  In reality, there was no proprietary trading algorithm, and MELTON invested almost none of the millions of dollars he raised in the manner promised to investors.  The few times that MELTON did make trades, it was not in futures contracts, and the trading was generally unprofitable.  For the most part, instead of trading, MELTON used his investors’ money to pay his personal expenses—including mortgage payments and sailing excursions—and to pay earlier investors in Ponzi-like fashion.

On approximately December 15, 2020, MELTON received word of a criminal investigation.  Four days later, MELTON fled the United States and stopped using his email account, credit cards, bank accounts, and phone number, and soon after, MELTON soon stopped communicating with investors.  MELTON remained at large for the next three years, until he was apprehended by law enforcement in October 2023, while he was traveling through the United Kingdom.  MELTON was extradited back to the United States in December 2025.

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In addition to the prison term, MELTON, 62, of Boulder, Colorado, was ordered to pay restitution, in an amount to be determined within 90 days, and forfeiture in the amount of $3,756,135, representing proceeds from his illegal scheme.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DERRICK VAN YEBOAH, a/k/a “Van,” was sentenced to 85 months in prison for his role in an international criminal organization that stole more than $100 million from victims via romance scams and business email compromises.  On March 5, 2026, VAN YEBOAH pled guilty to one count of conspiracy to commit wire fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence.

“Romance scammers do not simply steal money—they weaponize trust,” said U.S. Attorney Jay Clayton.  “Van Yeboah and his co-conspirators exploited trust, loneliness, and legitimate business relationships to steal more than $100 million.  Today’s sentence reflects the seriousness of these calculated frauds and our commitment to pursuing international criminal organizations that target Americans.”

According to the charging documents and statements made in public filings and public court proceedings:

VAN YEBOAH was a member of a criminal organization primarily based in Ghana that committed romance scams and business email compromises against individuals and businesses located across the United States.  Many of the conspiracy’s victims were vulnerable older men and women who were tricked into believing that they were in online romantic relationships with persons who were, in fact, fake identities assumed by members of the conspiracy.  Once members of the conspiracy had gained the trust of their victims, they deceived those victims into sending their money to the enterprise or into helping them launder funds from other victims.  The conspirators also committed business email compromises to trick and deceive businesses into wiring funds to the enterprise.  In total, the conspiracy stole and laundered more than $100 million from dozens of victims.  After stealing the money, the  fraud proceeds were then laundered to West Africa.

VAN YEBOAH personally perpetrated many of the romance scams by impersonating fake romantic partners in communications with victims.  For example, in 2019 and 2020, VAN YEBOAH assumed fake identities to engage in romance scams with an Ohio woman and a Delaware woman and induced them into transferring approximately $4.2 million to accounts belonging to members of the conspiracy.  Similarly, in 2024, VAN YEBOAH assumed a fake identity to engage in a romance scam with a North Carolina man and induced him into transferring approximately $123,000 to accounts belonging to members of the conspiracy by claiming that he needed funds for both a parent’s funeral and to recover gold and diamonds from Italy.

VAN YEBOAH is being held responsible for more than $10 million he stole from victims via his romance scams.

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In addition to the prison term, VAN YEBOAH, 41, of Ghana, was sentenced to two years of supervised release and ordered to pay $10,149,429.17 in forfeiture.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  The Justice Department’s Office of International Affairs worked with the International Cooperation Unit of the Office of the Attorney-General of Ghana to secure VAN YEOBAH’s August 7, 2025, extradition to the United States.  Ghana’s Economic and Organized Crime Office, the Ghana Police Service – INTERPOL, Ghana’s Cyber Security Authority, and Ghana’s National Intelligence Bureau all provided significant assistance to ensure VAN YEOBAH’s extradition.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Mitzi Steiner are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced that EDWARD GENE SMITH was sentenced today by U.S. District Judge Paul A. Engelmayer to 30 years in prison for drugging a female victim (“Victim-1”) with the intent to rape her, enticing another female victim (“Victim-2”) to travel to New York where SMITH drugged and sexually assaulted her, receipt of child pornography, and obstruction of justice.  SMITH also admitted to additional conduct relating to other victims. 

“Edward Gene Smith is a sexual predator and a serial rapist,” said U.S. Attorney Jay Clayton.  “He spent years hiding behind wealth, education, and status while he committed egregious sexual crimes.  He drugged and raped women, documenting his crimes with extensive notes planning how he would torture and punish his victims, and surreptitiously photographing them, while they were nude and unconscious.  The defendant also obtained and maintained a trove of thousands of files of child sexual abuse material.  The defendant took steps to hide his crimes, and, when he was caught, obstructed the investigation by compelling a victim he had drugged and raped to sign a false letter of support.  He is now where he belongs, in prison.  Every New York family is safer with the defendant off the streets.”

According to documents filed in this case and statements made in public court proceedings:

Between approximately 2015 and June 2024, SMITH, who was during that approximate time period a senior executive of major financial institutions, planned to drug, attempted to drug, and/or drugged numerous women with the intent to incapacitate them and/or render them unable to consent to sexual activity.  SMITH did, in fact, engage in sexual activity with multiple of these women, and, in at least some cases, surreptitiously took videos or photographs of his criminal sexual activity. 

At least on or about April 23, 2023, SMITH drugged and raped Victim-1 in his Central Park South residence.  Specifically, unbeknownst to Victim-1, SMITH gave Victim-1 one or more alcoholic beverages that he had laced with Klonopin, a controlled substance.  After Victim-1 consumed the drugged drink, SMITH physically restrained Victim-1, and raped her while she was unconscious.  While Victim-1 was still unconscious, SMITH also took a video of himself sexually assaulting Victim-1, and then shared that video with others via an encrypted messaging platform, on a channel that was dedicated to sharing depictions of incapacitated or unconscious women in sexually exploitative positions.

Previously, between in or about 2019 and in or about 2020, SMITH repeatedly drugged and sexually assaulted Victim-2. SMITH met Victim-2 in 2019 when Victim-2 was a college student and persuaded Victim-2 to relocate to New York City, which she did.  SMITH thereafter controlled Victim-2’s finances, social life, and activities, and repeatedly drugged and sexually assaulted Victim-2 over the course of several months.  During this time period, SMITH caused Victim-2 to engage in sexual activity through coercion and force, including threatened and physical assault and physical restraint.  Additionally, SMITH informed Victim-2 of one or more firearms that he possessed and showed Victim-2 at least one such firearm.

In or about the Fall of 2021, SMITH communicated with another victim (“Victim-3”), who was then 17 years old.  SMITH followed a similar pattern with Victim-3.  While Victim-3 was still 17 years old, SMITH solicited explicit photographs from Victim-3.  Shortly after Victim-3 turned 18 years old, SMITH caused Victim-3 to travel to New York City, attempted to drug Victim-3, and then physically and sexually assaulted her. In or about October 2023, SMITH caused Victim-3 to travel to New York City again, which she did, and drugged and sexually assaulted her.  Around this time, SMITH also posted Victim-3’s photographs and personal contact information to a website advertising prostitution services, without Victim-3’s knowledge. 

Between approximately 2012 and June 2024, SMITH also received via the internet and possessed a large volume of images and videos on his personal devices that depicted children, including prepubescent children, being sexually abused.

In or about August 2024, after a search warrant was executed at SMITH’s residence, revealing that SMITH possessed child pornography on his electronic devices, SMITH paid Victim-1 thousands of dollars to sign a false document in an attempt to obstruct the investigation.  Also in or about August 2024, SMITH solicited other individuals to sign false documents in an attempt to obstruct the investigation.

If you have been victimized by SMITH in any way or have any additional information about his illegal behavior, please call the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI.

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In addition to the prison term, SMITH, 50, of New York, New York, was sentenced to a lifetime of supervised release.

Mr. Clayton praised the outstanding work of the FBI.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Remy Grosbard, Rita Maxwell, Daniel Richenthal, and Joe Zabel are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.

United States Attorney for the Southern District of New York, Jay Clayton, and Criminal Division Chief, Amanda Houle, announced today a voluntary compliance agreement (the “Agreement”) under Title III of the Americans with Disabilities Act (“ADA”) with Weill Cornell Medicine (“WCM”), pursuant to which WCM acknowledges that policies and programs during physician Darius Paduch’s tenure at WCM were inadequate to detect, prevent, and respond to the sexual abuse of patients.

“Today’s landmark agreement with WCM is a direct reflection of our Office’s pledge to prioritize combating sexual abuse through a victim-centered approach,” said Criminal Division Chief Amanda Houle.  “When victims are front of mind for our core community institutions—including in healthcare—sexual abuse is better detected, reported, and prosecuted so that perpetrators are held responsible and others are deterred.  Today’s agreement shows the benefits to victims when we pair criminal accountability for individual perpetrators with institutional obligations to maintain the strongest possible controls to safeguard against future sexual abuse. Thanks to the work of our dedicated Assistant U.S. Attorneys, Darius Paduch is spending his life in prison for his horrific crimes and, importantly, WCM, a leader in healthcare for New Yorkers, is committed to maintaining an industry-leading sexual-abuse prevention program and to self-reporting any future federal crimes involving sexual misconduct to our Office.  In addition to requiring continued enhancement of controls and reporting, the agreement requires WCM to commit $30 million and other non-financial support to establish the WCM Institute for Safe Patient Care and Patient Empowerment.  We look forward to working with the Institute to set new, higher standards for collaboration among medical institutions, patient safety organizations, regulators, and law enforcement aimed at stopping sexual abuse and ensuring prompt reporting of sexual misconduct in the healthcare system and in our community more generally.” 

“Along with U.S. Attorney Jay Clayton, I am proud to announce this agreement as a milestone in our ongoing victim-oriented effort, which is carried out every day by the women and men of the Southern District, including in our Civil Rights and Human Trafficking Unit.  In the past 18 months, our Office has charged more than 45 individuals with federal sex crimes, including teachers, licensed therapists, bankers, and others in positions of significant trust, as well as gang members and drug traffickers. Our Office will continue with full force to prosecute perpetrators and to hold institutions to the highest standards in protecting victims.”

“As the public has seen time and again, when medical institutions fail to implement and enforce robust safeguards to protect patients from sexual abuse, victims suffer unspeakable harms, and the public trust in the doctor-patient relationship is undermined,” said U.S. Attorney Jay Clayton.  “Today’s agreement sends a strong, clear message to all healthcare institutions: patient sexual abuse should never happen in our healthcare system, and institutions must devote the necessary resources to build and continuously monitor and improve programs that detect, report, and prevent sexual abuse—without exception. The agreement also underscores the commitment of our Office, in particular our Civil Rights and Human Trafficking Unit, to protecting victims from sex crimes in all corners of society. Together with our law enforcement partners, including the FBI and the NYPD, we are working with our schools, hospitals, businesses, government organizations, and other institutions to ensure that processes for identifying predators are improved and victims feel safe coming forward.”

Title III of the ADA prohibits places of public accommodation from discriminating against any individual on the basis of disability.  Victims of Darius Paduch’s sexual abuse suffered from certain genetic conditions, as well as sexual and erectile dysfunction, each of which constitutes a “disability” under the ADA.  In 2024, following a criminal trial in this District, Paduch was convicted of six counts of inducement to travel to engage in unlawful sexual activity, and five counts of inducement of a minor to travel to engage in unlawful sexual activity, in violation of Title 18, United States Code, Sections 2422(a), (b), and 2.  Paduch was sentenced to life imprisonment for his crimes.

The out-of-court Agreement resolves a yearslong criminal investigation during which the U.S. Attorney’s Office determined that over Paduch’s tenure, WCM maintained policies and programs insufficient to detect, prevent, and respond to Paduch’s widespread sexual abuse of patients.  Specifically, as detailed in the Agreement announced today, the investigation found, among other things, the following:

• From at least 2009 to 2019, Paduch sexually abused many of his patients—including boys as young as 13 years old.  During that time, WCM policy delegated to the now-former Urology Department chair (the “Former Urology Chair”) primary responsibility and authority to investigate staff and patient complaints, as well as the discretion to escalate complaints to the Dean or Vice Dean of the Medical School. 
• Between 2012 and 2014, the Former Urology Chair and the WCM Human Resources Department received reports of instances of Paduch using inappropriate sexual language and engaging in inappropriate conduct with colleagues. 
• In 2015 and 2016, the Former Urology Chair received two reports from two doctors that Paduch had manually masturbated one patient to become erect for an exam and directed another patient to masturbate while Paduch remained in the room.  The Former Urology Chair did not escalate these allegations against Paduch or report them to others at WCM. 
• In March 2018, WCM, including the Former Urology Chair, received a complaint alleging that Paduch told a patient to masturbate in his presence to become erect for an exam and showed the patient photographs of other men’s penises during the consultation.  WCM assigned that complaint to a WCM employee who had not received training and had no experience in investigating sexual abuse allegations.  The Former Urology Chair did not inform the investigator or anyone else at WCM of the prior complaints relating to Paduch.  
• In November 2018, an adult male patient reported to the Former Urology Chair that Paduch had engaged in what the patient described as sexual and nonsexual misconduct, including masturbating in front of the patient on Paduch’s boat and sending him lewd electronic messages.  The report was assigned to the same inexperienced investigator assigned to handle the March 2018 complaint.  As a result of the investigation, WCM ended Paduch’s employment at WCM by not renewing Paduch’s faculty appointment at WCM.  WCM sent Paduch’s patients a letter noting that Paduch was no longer practicing at WCM but did not provide the reason for his non-renewal.  Further, when the Former Urology Chair received inquiries from a separate medical institution where Paduch was subsequently hired and abused patients, he did not disclose the reason for Paduch’s termination from WCM or disclose any patient complaints. 

Since learning of Paduch’s sexual abuse, WCM has paid or agreed to pay victims over $1 billion to settle civil claims to date, and is committing additional funds to address detection, prevention, and reporting of sexual abuse and misconduct in the healthcare setting.  To that end, WCM will commit $30 million to create the Institute for Safe Patient Care and Patient Empowerment, which will be dedicated to the adoption of meaningful sexual abuse and misconduct risk mitigation policies, procedures, and practices at healthcare providers in New York and nationwide.

As part of the Agreement, WCM also acknowledged that the policies and programs that WCM had in place at the time of Paduch’s offenses were not adequate to detect, prevent, and respond to sexual abuse of patients and, in fact, failed to detect and sufficiently respond to Paduch’s conduct.  WCM has proactively taken significant remedial measures that WCM has committed to maintaining and enhancing during the term of the Agreement.  Under the Agreement, WCM will maintain, monitor, and, as necessary or appropriate, enhance such measures, which include a chaperone requirement with routine compliance oversight and monitoring and policy changes to fill governance and procedural gaps regarding the escalation and investigation of patient misconduct complaints.  Further, during the term of the Agreement, WCM is required to self-report to the U.S. Attorney’s Office any evidence of a criminal violation involving sexual misconduct. WCM must also conduct three separate internal reviews during the term of the Agreement to evaluate WCM’s sexual misconduct prevention programs.  WCM must certify semiannually its compliance with the terms of the Agreement. 

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Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.

This case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division, with assistance from the Civil Rights Unit in the Civil Division.  Assistant U.S. Attorneys Marguerite B. Colson, Elizabeth A. Espinosa, Ni Qian, and David J. Kennedy are in charge of the case. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that on Friday, July 24, 2026, a jury found SAMUEL BAUTISTA, a/k/a “Sammy,” guilty of racketeering conspiracy, attempted murder and assault, and additional firearms and drug-related charges.  BAUTISTA was found guilty following a two-week trial before U.S. District Judge George B. Daniels and is scheduled to be sentenced on December 2, 2026. 

“On the evening of January 19, 2022, Bautista, an armed drug trafficker, shot at a rival dealer but missed, instead striking an 11-month-old baby girl who was seated in a car seat beside her mother in the face,” said U.S. Attorney Jay Clayton.  “Somehow, she survived, but with devastating injuries.  It was such an outrageous crime that it captured the attention of people across this city and this country the night it occurred.  New Yorkers want gun toting criminals off our streets and we hear them.  We will not allow armed drug traffickers to take this city from the women and men who are raising their families here.  And to the gangs who think the streets of New York are their territory to fight over, we remind you that you can cover your head, you can cover your face, but eventually, we will find you.  And when we find you, you will be convicted and you will go to federal prison.”

According to the charging instruments, public court filings, and the evidence presented at trial:

From 2011 to 2023, members of 2860, a violent drug-trafficking organization and street gang based at 2860 Grand Concourse in the Bronx, New York, distributed large quantities of cocaine base, in a form commonly referred to as “crack,” to their customers on the street.  Notwithstanding a prior federal drug-trafficking conviction for this very criminal activity, BAUTISTA was released from federal prison in 2016 and resumed armed drug trafficking.  At all times, the members of 2860 fought with rival dealers, with whom they clashed on many occasions, including on January 19, 2022, when BAUTISTA shot at a rival dealer and instead hit the baby girl. 

A number of BAUTISTA’s co-conspirators and fellow members of 2860 previously pled guilty and are awaiting sentencing, and the rival dealer whom BAUTISTA targeted on January 19, 2022, was also convicted and sentenced on multiple drug and firearms-related charges.

*                *                *

BAUTISTA, 33, of the Bronx, New York, was convicted of racketeering conspiracy, attempted murder and assault in aid of racketeering, and multiple firearms and drug-related charges.  The racketeering conspiracy and multiple firearms and drug-related charges all carry a maximum sentence of life in prison.  BAUTISTA faces a combined mandatory minimum sentence of 25 years.  

Mr. Clayton praised the victim’s parents for their commitment to obtaining justice for their daughter and the outstanding work of the New York City Police Department and the Federal Bureau of Investigation.  Mr. Clayton also thanked the Bureau of Prisons, the New York City Department of Correction, and the Utica Police Department for their assistance.

This case was investigated and prosecuted as part of Project Safe Neighborhoods (“PSN”), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe.  Coordinated by the U.S. Attorneys’ Offices in each of the 94 federal districts, PSN is tailored to particular communities to address strategically specific violent crime and public safety challenges.  As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe.  PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Thomas John Wright and Ryan W. Allison are in charge of the prosecution, with the assistance of Paralegal Specialist Sandy Alcantara.

United States Attorney for the Southern District of New York, Jay Clayton, announced the guilty plea of DEREK WACHOB for orchestrating a multi-year scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.  WACHOB pled guilty today to one count of wire fraud before U.S. District Judge J. Paul Oetken.

“Derek Wachob portrayed himself as a billionaire and accomplished CEO, but the success he projected was a fiction sustained by fraud,” said U.S. Attorney Jay Clayton.  “He defrauded victims—including some of his closest friends—of more than $66 million and used their money to bankroll a lifestyle of luxury cars, vacations homes, private jets, helicopters, and yachts.  In New York, we celebrate ambition, hard work, and honest achievement.  These are bedrock principles that fueled the growth of our great city.  Fraudsters undermine those principles and erode the trust in the fairness of our society.  Today’s guilty plea sends a message that fraud will not be tolerated and ensures Wachob faces the consequences of his lies.”

According to the charging documents and statements made in public filings and public court proceedings:

From at least in or about October 2022 through in or about August 2024, WACHOB—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma (“Company-1”)—engaged in a scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.  To obtain money from each of the victims, WACHOB lied and misled the victims by, among other things, falsely claiming to offer purported business opportunities based on future steel purchases that WACHOB pledged to make.  WACHOB used these misrepresentations to take millions of dollars from even some of his closest friends.  Instead of using the victims’ money as promised, WACHOB spent the funds to maintain his extravagant lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts, and prop up Company-1, which was struggling financially and in debt.

*                *                *

WACHOB, 53, of Sapulpa, Oklahoma, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  WACHOB is scheduled to be sentenced by Judge Oetken on November 17, 2026.

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Attorney’s Office for the Northern District of Oklahoma for its assistance.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and the Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced the unsealing of a four-count Indictment charging CANDICE JOHNSTON, a/k/a “Queen,” with racketeering conspiracy, murder in aid of racketeering, murder through the use of a firearm, and conspiring to traffic firearms in connection with JOHNSTON’s long-running leadership of the Red Life Militia gang, one of the sets of the nationwide Bloods gang.  JOHNSTON was arrested this morning and was presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.  The case is assigned to U.S. District Judge John P. Cronan.

“As alleged, Candice Johnston, known as ‘Queen,’ was a leader of a violent set of the Bloods gang calling themselves the Red Life Militia,” said U.S. Attorney Jay Clayton.  “During Johnston’s reign, on May 31, 2017, she ordered the brutal robbery and murder of Noel Farrow in the Bronx.  The people of the Bronx did not ask for, want, or deserve a destructive, self-proclaimed ‘militia,’ led by criminals in their neighborhood.  New Yorkers deserve to live safely in their neighborhoods, free from the influence of gangs like that which Johnston led and glorified.  The women and men of this Office will continue to relentlessly pursue and dismantle violent street gangs that jeopardize the safety of our communities.”

“As alleged, Candice Johnston led a violent Bloods set built on murder, armed robbery, gun and narcotics trafficking, promotion of prostitution, and other serious crimes,” said HSI Acting Special Agent in Charge Pete Gizas.  “By allegedly directing the robbery and murder of a former drug supplier and receiving illegal firearms trafficked from North Carolina to the Bronx, she stands accused of introducing lethal firepower and bloodshed into a Bronx neighborhood.  Together with our law enforcement partners, HSI will do everything in our power to keep New Yorkers safe.” 

“Candice Johnston served as the leader of the Bloods’ Red Life Milita, allegedly trafficking guns and drugs across the city, brazenly touting her gang affiliation on social media, and ordering the cold-blooded murder of a drug supplier,” said NYPD Commissioner Jessica S. Tisch.  “Her arrest is the direct result of the NYPD’s precision policing strategy at work: dismantling gangs, taking guns off our streets, and holding those who commit violence accountable.  I thank HSI and the U.S. Attorney’s Office for the Southern District of New York for their partnership in this case and their continued work to keep New Yorkers safe.” 

As alleged in the Indictment, other publicly filed documents, and statements made in court:(1)

JOHNSTON was the leader of the Red Life Militia, a subset of the United Blood Nation (“UBN”), a faction of the nationwide Bloods street gang.  The Red Life Militia gang engaged in, among other activities, acts involving murder, assault, gun trafficking, narcotics trafficking, promotion of prostitution, and robberies.  JOHNSTON frequently publicized her leadership in Red Life Militia through social media, displaying gang signs, tattoos, and other insignia of the gang, some of which include the following:

On May 31, 2017, JOHNSTON ordered a subordinate member of her gang to rob and murder Noel Farrow—a former drug supplier to the gang—in the Bronx, New York, which resulted in Farrow’s death from gunshot wounds. 

JOHNSTON also received firearms that had been illegally obtained in North Carolina and transported to JOHNSTON in the Bronx.

*                *               *

JOHNSTON, 44, of the Bronx, New York, is charged with racketeering conspiracy, which carries a maximum sentence of life in prison; murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; murder through the use of a firearm, which carries a maximum sentence of life in prison or death; and conspiracy to receive firearms from out of state, which carries a maximum term of five years in prison.

The statutory minimum and maximum penalties are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding investigative work of Special Agents and Task Force Officers of HSI, the NYPD and their Intelligence Section, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.  Mr. Clayton also thanked the Federal Bureau of Investigation for its invaluable assistance.

The case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant United States Attorneys Alexandra S. Messiter and Michael R. Herman are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that International Union of Journeymen and Allied Trades (“IUJAT”), United Service Workers Union, IUJAT National Union (“USWU”), Home Healthcare Workers of America, IUJAT (“HHWA”), Service Professionals Union Local 726 IUJAT (“LOCAL 726”), and United Welfare Fund - Welfare Division (“UWF”) (collectively, the “Defendants”) agreed to pay $3,850,000 to resolve allegations that they violated the False Claims Act by falsely certifying that they were eligible for Paycheck Protection Program (“PPP”) loans. 

The Defendants are organized as tax-exempt non-profit organizations pursuant to Section 501(c)(5) of the Internal Revenue Code.  The PPP was established by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to assist small businesses nationwide adversely impacted by the COVID-19 pandemic.  Administered by the SBA, the program provided forgivable loans to eligible borrowers.  In April 2020, Section 501(c)(5) non-profit organizations were not eligible to apply for or receive PPP loans.  The settlement resolves claims that the Defendants violated the False Claims Act by falsely certifying their eligibility for PPP loans because, as 501(c)(5) non-profit organizations, the Defendants were ineligible for the loans at the time they applied.

“The Paycheck Protection Program was created to help eligible small businesses weather the economic strain of the pandemic through forgivable loans,” said U.S. Attorney Jay Clayton.  “The defendants here applied for and received millions of dollars in taxpayer funds for which they were not eligible.  This Office is committed to protecting taxpayer dollars and recovering public funds that flow to those who do not qualify.” 

As alleged in the Complaint filed in Manhattan federal court:

IUJAT, USWU, HHWA, and LOCAL 726 are labor unions, and UWF is an employee benefit plan that provides welfare benefits to members of these labor unions.  Between April 16 and April 20, 2020, each Defendant submitted, through its authorized representative, an application for a PPP loan.  In total, the Defendants received $3,316,966 in PPP loans.  Each Defendant certified on its loan application that it was eligible to receive the loan under the rules in effect at the time, and each Defendant later applied for and obtained full forgiveness of its loan.

At the time they applied in April 2020, the Defendants were 501(c)(5) non-profit organizations and were therefore ineligible to receive PPP loans.  Before applying, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans.  Nevertheless, each Defendant decided to apply for and accept a loan.

The Defendants, at a minimum, acted with reckless disregard or deliberate ignorance of the fact that they were ineligible for the PPP funds at the time they applied.  In fact, the Defendants became aware on April 9, 2020, that the AFL-CIO—the nation’s largest federation of unions—had advised that labor unions were ineligible for PPP loans. 

As part of the settlement, the Defendants admitted and accepted responsibility for certain conduct alleged by the United States, including the following:

• Each Defendant certified on its PPP borrower loan application that it was eligible to receive the loan under the rules of the SBA in effect at the time the application was submitted.
• Before applying for the PPP loans, the Defendants were aware that an SBA regional employee had advised their contact at a bank that only 501(c)(3) and 501(c)(19) non-profit organizations were eligible for PPP loans.  The Defendants are not 501(c)(3) and 501(c)(19) non-profit organizations. 

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.

Mr. Clayton praised the Small Business Administration’s Office of General Counsel for its assistance with this case.

The case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorney Mark Osmond is in charge of the case.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging MICHAEL STAMP and MARCUS PLANK with securities fraud.  The charges arise from an alleged insider trading scheme in which STAMP and PLANK used confidential information belonging to their then-employer, Volkswagen Group, concerning a joint venture between Volkswagen and Rivian Automotive, Inc. to make hundreds of thousands of dollars in illegal profits.  STAMP and PLANK were arrested today and will be presented in the U.S. District Court for the Northern District of California.  The case has been assigned to U.S. District Judge Katherine Polk Failla.   

“Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits,” said U.S. Attorney Jay Clayton.  “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently.  Insider trading is a crime that New Yorkers want pursued with vigor.  Its effects ripple through the financial system, harming ordinary investors and eroding public confidence.  Today’s charges underscore the commitment of this Office and our law enforcement partners to protecting the integrity of our markets and holding accountable those who choose to violate the law.”

“The case of Michael Stamp and Marcus Plank shows the FBI's commitment to protecting the integrity of our financial markets,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The co-defendants are alleged to have engaged in insider trading for personal gain, and we will work with our partners to identify those who threaten the United Stated economic system.”

According to the allegations contained in the Indictment:(1) 

Between April and July 2024, STAMP and PLANK engaged in a scheme to trade in the securities of Rivian Automotive, Inc. based on material nonpublic information concerning a multibillion-dollar joint venture between Rivian and Volkswagen Group.  STAMP and PLANK were employees of a Volkswagen subsidiary and worked in the United States on temporary assignment form Germany.  Through their positions, they gained access to confidential, nonpublic information concerning Volkswagen’s ongoing negotiations with Rivian about a potential joint venture.  Despite owing duties of trust and confidence to their employer, STAMP and PLANK began purchasing options and equity positions in Rivian shortly after learning of the joint venture discussions.  On June 25, 2025, Rivian and Volkswagen publicly announced their joint venture, and Rivian’s share price rose 23% the following day.  STAMP and PLANK then sold their Rivian positions, with STAMP realizing approximately $250,000 in profits, PLANK realizing at least approximately $50,000 in profits, and PLANK’s close family member realizing approximately $12,000 in profits.  STAMP and PLANK understood their actions were illegal.  For example, eight days prior to the announcement of the joint venture, STAMP searched “statute of limitations insider trading,” and following the announcement PLANK’s close family member searched, in German, “how is insider trading prosecuted?”

*               *                *

STAMP, 31, of San Jose, California, and PLANK, 45, of San Jose, California, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison. 

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Shiva H. Logarajah and Daniel G. Nessim is in charge of the prosecution.

1. ^

   As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that JAY LUCAS, the founder and managing partner of Lucas Brand Equity LLC (“LBE”), a private equity fund based in Manhattan, pled guilty to securities fraud, investment adviser fraud, wire fraud, and money laundering in connection with a scheme to raise over $50 million from investors by falsely representing that their money would be invested in early-stage health and wellness companies.  Instead, LUCAS diverted much of that money to cover personal expenses, promote unrelated ventures, and make Ponzi-like payments to earlier investors.  LUCAS pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky. 

“Lucas lied to investors to induce them into investing millions of dollars in private equity funds that he created, promising to invest their money in emerging companies in the health and wellness space,” said U.S. Attorney Jay Clayton.  “In reality, Lucas used much of the money to pay for personal expenses and ventures entirely unrelated to the funds, and to make Ponzi-like payments to other investors.  Today’s plea reflects the continued commitment of this Office and our law enforcement partners to holding accountable investment advisers who abuse their investors’ trust to illegally enrich themselves.”

As alleged in the Indictment: 

LUCAS is the founder and managing partner of LBE and three private funds: Lucas Brand Equity LP (“Fund One”), L.B. Equity Emerging Growth LP (“Fund Two”), and L.B. Equity Wellness Growth L.P. (“Fund Three”).  Since 2017, LUCAS has defrauded investors by, among other things, systematically misappropriating their funds. 

LUCAS told investors that LBE’s “core strategy is to invest in these small to mid-size emerging brands, provide value added services to differentiate them and catalyze growth to a sufficient scale for exit.”  LUCAS raised over $50 million from investors and, instead of using the money as he promised, spent much of it on personal expenses, including alimony, rent, a vanity newspaper project in his hometown, and political consultants.  He also used new investor money to pay earlier investors in Ponzi-like fashion, enriching himself while starving the Funds and portfolio companies of capital.  In addition, LUCAS funneled investor money to Immunocologie, a luxury skincare business run by LUCAS’s wife, without disclosing that conflict of interest.  Much of the money for Immunocologie was then spent on trips, social events, and other unprofitable ventures.  Moreover, LUCAS arranged for LBE, not the Funds, to take majority ownership interest in Immunocologie, giving himself and not his clients an equity interest in the business. 

LUCAS’s misconduct left the Funds chronically undercapitalized and unable to cover basic fund expenses, including salaries for LBE employees.  Internally, employees continued to express frustration about LUCAS’s misuse of investor money, writing that LUCAS’s spending was “not spending on LBE,” was “literally fraudulent,” and was “a huge betrayal of investor trust and most likely illegal.” 

*               *                *

LUCAS, 71, of Portsmouth, New Hampshire, pled guilty to one count of securities fraud, one count of wire fraud, and one count of money laundering, each of which carries a maximum prison term of 20 years, and one count of investment adviser fraud, which carries a maximum prison term of five years.  

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation.  Mr. Clayton also thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in the investigation.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Adam S. Hobson and David J. Robles are in charge of the prosecution. 

United States Attorney for the Southern District of New York, Jay Clayton, announced that ASHANTI WASHINGTON, a/k/a “Shani Boni,” pled guilty today before U.S. Magistrate Judge Robyn F. Tarnofsky to committing perjury at the March 2025 federal criminal trial of United States v. Kevin Perez, in which Perez, who goes by the name “Kay Flock,” was on trial for racketeering, murder, and firearm offenses.  The case is assigned to U.S. District Judge George B. Daniels.

“As she has now admitted, Ashanti Washington swore an oath to tell the truth while testifying in federal court, but then lied to smear a murder victim and help a gang leader try to escape accountability for his violent crimes,” said U.S. Attorney Jay Clayton.  “Truth under oath is central to our system of justice, and this Office is committed to protecting it.”

According to the Indictment, statements made in public filings, and public court filings: 

On March 10, 2025, trial began in the matter of United States v. Kevin Perez, 23 Cr. 99 (LJL).  At the trial, Perez faced charges of racketeering conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, and possession, use, brandish, and discharge of a firearm during and in relation to the attempted murder in aid of racketeering.  On March 20, 2025, the jury returned guilty verdicts as to racketeering conspiracy, attempted murder, and the firearm discharge count, and returned a not guilty verdict with respect to the murder count.  Perez was sentenced principally to 30 years in prison by the U.S. District Judge Lewis J. Liman. 

On March 17 and 18, 2025, Washington testified at Perez’s trial as a witness during the defense case and lied under oath about central facts relevant to the murder charges that Perez was facing.  At trial, Perez claimed that he shot and killed the victim out of self-defense. 

Washington, who was with Perez at the time of the killing, falsely testified that the murder victim had threatened to shoot and kill Perez.  WASHINGTON’s false testimony had an immediate and direct impact on evidentiary rulings in the trial. 

As WASHINGTON has now admitted, the victim in fact never threatened to shoot or kill Perez.

*                *               *

WASHINGTON, 24, of the Bronx, New York, pled guilty to one count of perjury at a federal criminal trial, which carries a maximum term of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the work of the Department of Homeland Security – Homeland Security Investigations and the New York City Police Department.

This case is being handled by the Office’s Violent Organizations and Crime Unit.  Assistant U.S. Attorneys Michael Herman, Patrick R. Moroney, and Ni Qian are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Regional Director of the U.S. Federal Protective Service (“FPS”), Robert D. Sooter, announced charges against ANDREW ARRABACA after he set a fire outside of 26 Federal Plaza, sending flames and smoke up the outside of the building.  ARRABACA was arrested yesterday and presented today before U.S. Magistrate Judge Robyn F. Tarnofsky.

“As alleged, the defendant caused a scene of destruction and mayhem by setting a fire at the entrance to a federal building in lower Manhattan which houses thousands of federal employees and receives hundreds of visitors daily,” said U.S. Attorney Jay Clayton.  “I am thankful for the brave, swift response of our law enforcement partners who stopped the defendant before he could cause greater harm.  Once again, our bravest ran to the fire.  Anyone who commits reckless acts that endanger New Yorkers and federal employees on federal property will be subject to serious federal criminal charges.”

“Andrew Arrabaca allegedly attempted to disrupt and harm the individuals and infrastructure of 26 Federal Plaza,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “His alleged acts appear to have been motivated by his anti-Government and anti-ICE beliefs.  His unlawful conduct was immediately thwarted by the heroic response of the Federal Protective Service Officers, NYPD Officers, FBI Special Agents, and FBI Police Officers.  FBI New York has zero tolerance for violence targeted at federal employees who choose to serve all Americans.”  

“As alleged in the complaint, Andrew Arrabaca traveled to a government building in Lower Manhattan armed with weapons and explosive devices,” said NYPD Commissioner Jessica S. Tisch.  “Because of the quick and brave actions of law enforcement, no one was seriously injured, and Arrabaca was taken into custody.  This incident is a stark reminder of the dangers that law enforcement officers face and the importance of the NYPD’s work with our federal partners to keep the people of New York City safe.”

“The Federal Protective Service is dedicated to safeguarding federal property and ensuring the safety of all who work in and visit these facilities,” said FPS Regional Director Robert D. Sooter.  “Our mission is to protect federal buildings, their occupants, and visitors by providing comprehensive law enforcement services.  Safety is a top priority; we remain committed to maintaining secure environments that support the vital work of our nation’s government.” 

As alleged in the Complaint:(1)

On the morning of July 20, 2026, ARRABACA set off several fireworks in front of the Jacob K. Javits Federal Building at 26 Federal Plaza and shot a BB rifle in the direction of the building.  ARRABACA then poured a bucket of flammable liquid onto the ground outside one of the building entrances and ignited the liquid.  The liquid exploded into flames.  ARRABACA was captured on video footage shooting the BB gun, pouring and igniting the liquid, and running from the scene, as pictured below in still images from surveillance videos:

After setting the fire, ARRABACA retrieved a box of fireworks from a utility wagon that he had wheeled to the area and threw the box into the fire.  Law enforcement agents apprehended and arrested ARRABACA just as an explosion sounded from the direction of the fire.

ARRABACA was wearing military-style camouflage pants, a belt with tactical pouches containing BB pellets and carbon dioxide cartridges, and a helmet bearing several phrases, including, “Kill yourself.”  A cross-body bag containing a knife and matches was concealed under ARRABACA’s clothing, and a New York driver’s license for ARRABACA was recovered from ARRABACA’s person. 

As pictured below, after ARRABACA’s arrest, law enforcement agents searched the wagon and recovered numerous items, including a BB rifle and a pellet rifle, a machete, two hatchets, a mallet, a hammer, and what appeared to be several fireworks, including a cylindrical, multi-shot consumer firework with a printed label reading “Nuclear Warhead” and a black and yellow radiation symbol.  A sign on the wagon bore the phrase “ICE Off Our Streets.”

During a recorded, Mirandized post-arrest interview, ARRABACA stated, in substance and in part, that he was motivated to act by anti-government beliefs, including a belief that government authorities were unlawfully harming people, and that he had targeted the building entrance because he previously observed that it was a busy one.

At the time of ARRABACA’s actions, the entrances to the Federal Building were guarded by law enforcement officers and/or government-contracted security guards and there were numerous individuals in the immediate vicinity of the Federal Building.  As pictured below, some individuals were just feet away from ARRABACA as he poured and lit a flammable liquid, creating a fireball.

Multiple individuals were evaluated for injuries, including at least one victim who appeared to have been hit with debris from the fire and/or explosion, resulting in a gash on the back of the victim’s head.

*                *                *

ARRABACA, 43, of Poughkeepsie, New York, is charged with destruction of property owned or leased by the United States by means of fire or explosives and causing personal injury or substantial risk of injury, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of 40 years in prison.

The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. 

Mr. Clayton praised the outstanding response of the FPS and the FBI New York Field Office.  Mr. Clayton also praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, as well as the assistance of the Department of Justice’s National Security Division, Counterterrorism Section.

This case is being handled by the Office’s National Security and International Narcotics Unit and General Crimes Unit.  Assistant U.S. Attorneys Jane Chong, Samantha Fry, and Varun A. Gumaste are in charge of the prosecution, with assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section of the Department of Justice’s National Security Division.

1.  

   ^

    As the introductory phrase signifies, the entirety of the Complaint to date constitutes only allegations, and every fact described herein should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, Westchester County District Attorney, Susan Cacace, Bronx District Attorney, Darcel D. Clarke, Bergen County Prosecutor, Mark Musella, and Commissioner of the Westchester County Department of Public Safety, Terrance Raynor, announced today the unsealing of a 15-count Indictment charging 11 defendants (the “BB7 Defendants”) with racketeering conspiracy in connection with their membership in or association with the “Bad Boys” (“BB7”) set of the Trinitarios street gang, as well as with a spate of other BB7-related violent crimes committed between September 2023 and September 2025—including five murders and multiple assaults and armed robberies.  A 12th defendant, JAROL LEDESMA, a/k/a “El Nueve,” a/k/a “Lil Nueve,” was charged with Hobbs Act robbery and interstate stalking offenses in connection with the gunpoint robbery of a prominent international music artist, which was allegedly carried out with members and associates of BB7 in June 2025.  The case is assigned to U.S. District Judge Philip M. Halpern.

“As alleged, the BB7 Trinitarios, operating from their historical headquarters in the Bronx, terrorized communities in New York City, Westchester, and northern New Jersey, night after night,” said U.S. Attorney Jay Clayton.  “This indictment reflects a broad-based effort by SDNY and our dedicated federal and local partners to stop the violence and bring relief to affected communities across the tri-state area.  Collectively, we are committed to holding gang leaders and their deadly associates accountable for their truly brutal conduct.  This is what our New York families want us to do—and we applaud the FBI, the Westchester County Police Department, the New York City Police Department, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, and the Manhattan District Attorney’s Office for their efforts to bring justice and safety to the streets of the New York metropolitan area.”

“Members of the BB7 criminal organization allegedly carried out a campaign of violence that left victims and families suffering unimaginable loss,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “Today's outcome sends a clear message: this type of violence will never be tolerated in New York.  The FBI New York Safe Streets Task Force remains steadfast in our mission to dismantle violent gangs, protect the American public, and deliver justice for the victims.”  

“These defendants, members of the Trinitarios gang, took part in a wave of violence and crime that claimed multiple lives and terrorized neighborhoods,” said NYPD Commissioner Jessica S. Tisch.  “This takedown is the result of the NYPD’s precision policing strategy and our relentless work targeting dangerous gangs and guns.  I thank our NYPD investigators and law enforcement partners for their commitment to dismantling these groups and making our streets safer.”

“Dismantling this network of organized violent criminals would hardly have been possible without one of the most extensive interagency partnerships in Westchester’s recent history,” said Westchester County DA Susan Cacace.  “I am proud of the significant role my office played in identifying and apprehending the individuals who murdered Ariela Mejia-Polanco last year in an act of unconscionable violence.  Either the highways of this county belong to the criminal gangs, or they belong to the public; through these charges, we are reaffirming that the rights of the law-abiding public will always come first. We can never allow our streets to be overtaken by organized criminal activity, and I thank all of our interagency partners for working in tandem to ensure this remains a durable promise.”

“I commend the outstanding work of the members of my office, the Southern District of New York, the New York City Police Department, and the FBI,” said Bronx DA Darcel D. Clarke.  “Their close collaboration resulted in the federal indictment of these defendants and demonstrates the power of coordinated law enforcement.  By holding violent offenders accountable, we are helping make our neighborhoods safer. To the families of the three men who lost their lives in these Bronx cases—Frankelis Tavarez, Adam Waldropt, and Gabriel Alvarez—I hope you find some measure of comfort in knowing that local and federal law enforcement are working together tirelessly to seek justice for your loved ones.  My office remains committed to pursuing justice with integrity while protecting our communities from violent crime.”

“Organized street gangs are not just a local problem,” said Bergen County Prosecutor Mark Musella.  “They are a regional public safety threat.  When criminals are willing to cross state lines to destroy lives, our response must be equally coordinated, equally determined, and completely relentless.  I am proud to say that in this case, cooperation among agencies and a dogged commitment by all involved brought us to this moment.” 

“The scope of work that was done by police and prosecutors to bring down this criminal enterprise is nothing short of outstanding,” said Westchester County Department of Public Safety Commissioner Terrance Raynor.  “I would like to commend the detectives from our General Investigations Unit, Forensic Investigations Unit, and our Real Time Crime Center—and all of our law enforcement partners—for their exemplary work. Inter-agency collaboration and technology were the keys to a successful conclusion in this particular homicide investigation.” 

As alleged in the Indictment and other documents filed in federal court:(1) 

From at least in or about September 2023 through September 2025, the BB7 Defendants, and others known and unknown, were members and associates of BB7, a “set” of the Trinitarios street and prison gang.  Members and associates of BB7 engaged in, among other activities, acts involving murder, assault, robbery, carjacking, narcotics trafficking, and wire fraud in and around the greater metropolitan area of New York City, including the Bronx and northern New Jersey.  In addition to racketeering conspiracy, the Indictment charges all of the BB7 Defendants with additional offenses, including:

On or about March 30, 2024, in the Bronx, SOSA and MANON murdered Frankelis Tavarez.

From on or about June 27, 2025, through on or about June 28, 2025, several of the defendants, including MARTHA, MERCEDES MARTE, PERALTA GOMEZ, PEÑA, and LEDESMA, used, among other means, a GPS tracker to stalk several victims by car from Massachusetts through Westchester County, the Bronx, and Manhattan to a hotel parking lot in the vicinity of Fort Lee, New Jersey.  There, while brandishing multiple firearms, they robbed a prominent international music artist in the middle of a U.S. tour of, among other things, high-value jewelry. 

On or about July 28, 2025, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, CARBUCCIA, and PEÑA organized, planned, and carried out a retaliatory shooting targeting rival gang members in the vicinity of Paterson, New Jersey.

On or about July 28, 2025, at a car meet in the Bronx, MARTINEZ murdered Gabriel Alvarez and Adam Waldropt.

On or about August 2, 2025, in the vicinity of Newark, New Jersey, SOSA, PLACENCIA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PEÑA murdered Alvis Perez Liriano.

On or about August 16, 2025, in the Bronx, MARTHA, MERCEDES MARTE, and CARBUCCIA planned, directed, and conducted an attempted armed robbery, during which CARBUCCIA and other members and associates of BB7 used firearms to shoot and seriously injure two victims.

On or about August 17, 2025, in the vicinity of Mount Vernon, New York, MARTHA, MERCEDES MARTE, PERALTA GOMEZ, ABAD RIVAS, CARBUCCIA, and PORTES GUABA, together with other members and associates of BB7, attempted to commit an armed carjacking of a black Mercedes-Benz G63 AMG SUV driven by Ariela Mejia-Polanco north from upper Manhattan through the Bronx into Westchester, where they shot and killed Mejia-Polanco during a high-speed pursuit on the Cross County Parkway.

*                *                *

A chart containing the names, charges, and minimum and maximum penalties for the defendants is set forth below. 

The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. 

Mr. Clayton praised the outstanding investigative work of the FBI.  He also thanked the NYPD, the Westchester County District Attorney’s Office, the Bronx District Attorney’s Office, the Bergen County Prosecutor’s Office, the Essex County Prosecutor’s Office, the Westchester County Department of Public Safety, the Passaic County Prosecutor’s Office, the Paterson Police Department, and the Manhattan District Attorney’s Office.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Carmi Schickler, John Sarlitto, and Christopher Morel are in charge of the prosecution.  Assistant U.S. Attorneys Timothy Ly and Patrick Moroney of the Office’s Violent Organizations and Crime Unit investigated the March 2024 murder of Frankelis Tavarez.  

The charges in the Indictment are merely accusations, and the defendants are presumed innocent until proven guilty. 

CHARGE

DEFENDANTS

MINIMUM AND MAXIMUM PENALTIES

Count One 

Racketeering Conspiracy 

Title 18, United States Code, Section 1962(d)

CHELDRID SOSA

ERICK PLACENCIA

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

JAVIER PEÑA 

ANGEL MANON

DARWIN MARTINEZ 

Count Two 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

CHELDRID SOSA 

ANGEL MANON 

Maximum: life in prison or death 

Minimum: life in prison

Count Three 

Interstate Stalking

Title 18, United States Code, Sections 2261A(1), 2261(b)(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ 

JAVIER PEÑA 

JAROL LEDESMA 

Count Four 

Interstate Stalking

Title 18, United States Code, Sections 2261A(2), 2261(b)(3), and 2

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA 

JAROL LEDESMA 

Count Five 

Hobbs Act Robbery

Title 18, United States Code, Sections 1951, and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ 

JAVIER PEÑA

JAROL LEDESMA 

Count Six 

Conspiracy to Commit Hobbs Act Robbery 

Title 18, United States Code, Section 1951

JUSTIN MARTHA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA

JAROL LEDESMA

Count Seven 

Firearm Use, Carrying, and Possession

Title 18, United States Code, Sections 924(c)(1)(A)(i) and (ii), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

JAVIER PEÑA

JAROL LEDESMA 

Maximum: life in prison

Minimum: seven years in prison, which must be consecutive to any other term imposed. 

Count Eight 

Attempted Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(5), and 2

ERICK PLACENCIA 

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ

WILFREN CARBUCCIA

JAVIER PEÑA 

Count Nine 

Murder in Aid of Racketeering

Title 18, United States Code, Section 1959(a)(1)

Maximum: life in prison or death

Minimum: life in prison

Count Ten 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

Maximum: life in prison or death 

Minimum: life in prison

Count Eleven 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

CHELDRID SOSA 

ERICK PLACENCIA 

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JAVIER PEÑA

Maximum: life in prison or death 

Minimum: life in prison

Count Twelve

Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

WILFREN CARBUCCIA

Count Thirteen 

Firearm Use, Carrying, and Possession 

Title 18, United States Code, Sections 924(c)(1)(A)(i), (ii), and (iii), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

WILFREN CARBUCCIA

Maximum: life in prison

Minimum: 10 years in prison, which must be consecutive to any other term imposed.

Count Fourteen 

Murder in Aid of Racketeering

Title 18, United States Code, Sections 1959(a)(1), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE

JOSE PERALTA GOMEZ 

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

Maximum: life in prison or death 

Minimum: life in prison

Count Fifteen 

Attempted Carjacking Resulting in Death 

Title 18, United States Code, Sections 2119(3), and 2

JUSTIN MARTHA

MICHAEL MERCEDES MARTE 

JOSE PERALTA GOMEZ

MANUEL ABAD RIVAS

WILFREN CARBUCCIA

JEILIN PORTES GUABA 

1. ^

    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.

A New York man and woman made an initial appearance today in Brooklyn, New York on charges of conspiracy to launder money derived from cyber investment fraud scams.

According to the indictment unsealed today, between 2020 and 2022, Zhuoying Chen, 27, of Brooklyn, New York and Haojie Zhang, 38, of Queens, New York managed a network of more than a dozen individuals based in Queens and Brooklyn, who opened 140 bank accounts in the name of approximately 45 shell companies to launder at least $43 million in proceeds of investment scams. Then, Chen and Zhang allegedly conspired with China-based co-conspirators to transfer the funds involved in the fraud schemes abroad.  

According to the indictment, the fraud schemes consist of perpetrators contacting victims via messaging services or social media applications. The perpetrators would initiate relationships with the victims and gain their trust, convincing victims to send money for lucrative investment opportunities. The perpetrators would show the victims fake profits on the purported investment and encourage the victims to invest more. The perpetrators would then steal the victim’s funds. 

“As alleged in the indictment, the defendants laundered fraud proceeds, enabling scammers to continue to victimize Americans and deprive them of their hard earned money,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Dismantling Chinese money laundering networks that support investment fraud schemes is critical to protecting Americans. The Criminal Division will relentlessly pursue the financial networks that fuel and profit from these fraud schemes.” 

“As alleged, the defendants were key members of a sophisticated money laundering network that funneled over $40 million in victim funds to bank accounts in China,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Our Office will continue in its strong tradition of holding accountable anyone who seeks to prey on vulnerable victims with investment fraud schemes.” 

“The defendants’ alleged operation laundered more than $40 million from American victims and deposited them directly in Chinese accounts overseas,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI’s New York Field Office. “The FBI is committed to working alongside our federal partners to dismantle scam compounds that seek to steal the hard-earned money of our citizens.”

“For nearly two years, these two Chinese nationals allegedly ran a sophisticated, illicit network that laundered funds stolen from unsuspecting victims’ life savings,” said Acting Executive Associate Director John A. Condon of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “Thanks to the dedicated efforts of HSI and our partners on the Homeland Security Task Force, this dangerous criminal enterprise has been exposed. HSI special agents remain relentless in their pursuit to dismantle money laundering networks and bring to justice anyone who seeks to profit from defrauding hard-working Americans.”

“Today’s indictment shows we’re not backing down against fraudsters who target innocent people — justice is coming for those who steal from hardworking Americans,” said Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation (IRS-CI) New York. “This case reflects how IRS‑CI and our partners work side‑by‑side to uncover money‑laundering networks and protect the public. Together, we’re pushing forward to ensure Americans’ hard‑earned money is safe from schemes like these.”

“Investment fraud schemes exploit the trust of victims through false promises of favorable returns,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS)’s New York Division. “The US Postal Inspection Service is committed to investigating fraud and protecting the community from those who seek to profit through deception.”

The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison.

The case is being investigated by FBI New York, HSI New York, IRS-CI New York, and USPIS New York.

Trial Attorneys Claire Galasso, David Ginensky, and Adrienne Rosen of the Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorneys Benjamin Weintraub and David Berman for the Eastern District of New York are prosecuting this case. MNF Financial Investigator Sheila Olander supported the investigation alongside former MNF Financial Investigator Kelly O’Mara.

The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims.

This prosecution is also part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, and Director of the Federal Bureau of Prisons (“BOP”), William K. Marshall III, announced today the unsealing of an Indictment charging KYLE BROWN, a former federal correctional officer with the BOP, with three counts of sexual abuse of a ward for engaging in sexual acts with an inmate he was responsible for guarding.  BROWN was arrested this morning and presented before U.S. Magistrate Judge Victoria Reznik.  The case is assigned to U.S. District Judge Philip M. Halpern.

“Sexual abuse will be met with federal charges throughout our society; it has no place anywhere and victims deserve protection everywhere,” said U.S. Attorney Jay Clayton.  “When a correctional officer abuses their power and harms an inmate, it is not only a violation of federal law—it is a betrayal of the trust that New York families place in our institutions.  We will continue to protect victims, pursue the truth, and hold accountable anyone who abuses their power for their own sexual gratification.”

“As alleged, Kyle Brown abused his authority to engage in sexual acts with an inmate under his protection,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI is committed to holding corrupt civil servants accountable.”

“The safety and security of federal prisons are of the utmost importance, and the DOJ OIG vigorously investigates allegations of abuse of inmates by Federal Bureau of Prisons staff to ensure that those who break the law and the public’s trust are held accountable,” said DOJ OIG Special Agent in Charge Ryan T. Geach.

“The allegations in the case represent a profound abuse of authority and a betrayal of public trust,” said BOP Director William K. Marshall III.  “Anyone who exploits their position of authority disgraces this profession and has no place in the Federal Bureau of Prisons.  Working alongside our law enforcement partners, we will pursue anyone who violates the law and ensure they are held accountable.”

According to the allegations in the Indictment and other public filings: 

Between in or about 2024 and on or about July 1, 2026, BROWN was employed as a federal correctional officer at Federal Correctional Institution, Otisville (“FCI Otisville”).  On three occasions between December 26, 2025, and April 4, 2026, BROWN engaged in anal and/or oral sex with an inmate who was incarcerated at FCI Otisville and over whom BROWN had authority.

                                                            *                *                *

BROWN, 27, of Newburgh, New York, is charged with three counts of sexual abuse of a ward, which carries a maximum sentence of 15 years in prison. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding investigative work of the FBI and DOJ OIG, as well as the FBI Hudson Valley White Collar Crime Task Force and Otisville FCI Special Investigative Swift Response.

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Christopher Morel and Madison Reddick Smyser are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.   

United States Attorney for the Southern District of New York, Jay Clayton, announced that TODD FAUSTIN, a former correction officer at Rikers Island, was sentenced today to 15 months in prison by U.S. District Judge Lewis J. Liman for making false statements relating to healthcare matters in connection with use-of-force incidents that took place within Rikers Island.  As part of his sentence, FAUSTIN was ordered to pay $370,336.79 in restitution and $370,336.79 in forfeiture.

“Todd Faustin lined his own pockets by exploiting one of the most sensitive interactions in our justice system: the use of physical force against prisoners,” said U.S. Attorney Jay Clayton.  “Our justice system relies on correction officers to act safely and honestly while serving in our prisons.  Today’s sentence demonstrates that when officers abuse the system and undermine New Yorkers’ trust, they will be held criminally accountable.”

According to the Indictment, plea agreement, and statements made in court:

The New York State Workers’ Compensation Board (the “Board”) administers New York State’s no-fault workers’ compensation system, which guarantees medical care and cash benefits to people who are injured at work, including employees of the New York City Department of Correction (“DOC”).  Payments made by the Board to DOC employees are paid from the New York City Treasury. For years, FAUSTIN was employed by the DOC as a correction officer and was assigned to work at Rikers Island. During that time, FAUSTIN falsely claimed that he was injured while on duty at Rikers Island during incidents with incarcerated individuals requiring the use of force.  Rather than approaching use-of-force incidents with the gravity and sensitivity that such moments deserve, the defendant actively sought out these incidents and attempted to instigate them to steal money from the workers’ compensation system. 

*                *                *

In addition to the prison term, FAUSTIN, 43, of New York, New York, was sentenced to one year of supervised release and ordered to pay restitution and forfeiture. 

Mr. Clayton praised the outstanding work of the New York City Department of Investigation, the New York State Office of Inspector General, and the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York. 

The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit and the Public Corruption Unit.  Assistant U.S. Attorneys Kaiya Arroyo and Stephanie Simon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today the last sentencing of gang members and narcotics distributors as a result of a long-running investigation conducted by the Federal Bureau of Investigation (“FBI”) in Newburgh and Poughkeepsie, New York.  26 of the defendants were convicted of being members, associates, and co-conspirators of the violent street gang the Young Gunnaz (“YG”), including YG leader Kashad Sampson.  12 of the defendants were convicted of being members and associates of the violent street gang the Double Nine Grim Reapers (“Grimz”), including Grimz leaders Jeremy Williams, Randy Jones, and James White.  U.S. District Judge Kenneth M. Karas imposed the sentences in the YG case, United States v. Kashad Sampson, et al., 22 Cr. 640, and U.S. District Judge Philip M. Halpern imposed the sentences in the Grimz case, United States v. Jeremy Williams, et al., 22 Cr. 641.  RODNEY GEORGE, a defendant in the Sampson case, was the last in this series to be sentenced and received 108 months in prison.  

“For years, members and associates of the Young Gunnaz and the Double Nine Grim Reapers brought shootings, armed robberies, narcotics trafficking, and fraud to communities across the Hudson Valley,” said U.S. Attorney Jay Clayton.  “Today’s final sentencing marks the end of a years-long prosecution that removed over 40 of these violent gang members and drug traffickers from our streets.  No gang should get to claim a block, a neighborhood, or a city as its own, and this Office will continue to work with our federal, state, and local partners to dismantle violent criminal organizations and protect the communities they prey upon.”

As alleged in the Indictments, other court filings, and statements made during court proceedings:

Since at least 2018, the Grimz has been a brutally violent street gang.  The Grimz was founded by co-defendants Jeremy Williams, a/k/a “Dubs,” and Randy Jones, a/k/a “Nickelz,” and has hundreds of members across New York State, including throughout Orange County, Dutchess County, and the New York State prison system.  The Grimz is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws and celebrates gun violence.  The highest-ranking members and leaders of the Grimz, like co-defendants James White, a/k/a “Infared,” and Octavious Griffin, a/k/a “Tate,” have so-called “serial numbers” within the Grimz, which include the name of a 9-millimeter firearm.

Since at least 2019, the YG has been a violent street gang that operated through New York State and engaged in large-scale narcotics trafficking, wire fraud, armed robberies, and shootings.  For the most part, the YG defendants were part of the PlayBoyGzz subset of YG, which was led by, among others, co-defendant Kashad Sampson, a/k/a “Shoca.”  Like the Grimz, senior members of YG glorified violence and demanded action from its members. 

For years, the Grimz and YG terrorized communities in this District and demonstrated a complete disregard for human life.  The Grimz defendants were responsible for multiple armed robberies and shootings in the City of Newburgh, including the November 3, 2020, attempted murder of a rival gang member.  During that attempted murder, which involved co-defendants Justice Jackson, a/k/a “Tweak,” Tyrell Simon, a/k/a “Rello,” a/k/a “Insane,” Thomas Rodriguez, a/k/a “Tom Tom,” a/k/a “Checks,” and others, Rodriguez shot a rival gang member multiple times while the rival gang member sat in his vehicle.  The rival gang member survived after receiving life-saving medical treatment at two different hospitals.  The Grimz were also responsible for trafficking large amounts of deadly narcotics, like crack cocaine and heroin, on the streets and for trafficking K2, a synthetic cannabinoid, within the New York State prison system. 

The YG defendants were responsible for at least approximately 13 shootings, three armed robberies, and a large-scale narcotics trafficking conspiracy responsible for flooding the streets with fentanyl, heroin, crack cocaine, and other drugs.  In addition, some of the YG defendants also participated in a widespread scheme to defraud the New York state unemployment insurance program during the COVID-19 pandemic.  In total, these defendants made just over $1,000,000 through this scheme and caused at least one of their victims to fall into financial ruin because, as a result of YG’s fraud, the victim lost her total disability social security payment. 

*                *                *

The counts of conviction and sentences imposed on the defendants in the Sampson and Williams cases are contained in the chart below.

Mr. Clayton praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, City of Newburgh Police Department, New York State Police, Town of New Windsor Police Department, Town of Newburgh Police Department, New York City Police Department, and Nassau County Police Department.  Mr. Clayton also thanked the FBI’s Westchester Safe Streets Task Force, the New York City Department of Correction, Correction Intelligence Bureau, the Department of Labor Office of the Inspector General, and the City of Poughkeepsie Police Department for their assistance in the investigation.

This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jennifer N. Ong, Ryan W. Allison, and Margaret N. Vasu are in charge of the prosecution.

United States v. Kashad Sampson, et al., 22 Cr. 640 (KMK)

Defendant

Age

Counts of Conviction

Sentence

Kashad Sampson, 

a/k/a “Shoca”

27

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

200 months in prison

Five years’ supervised release

George Delgado,

a/k/a “Groc”

26

Racketeering Conspiracy

Assault with a Deadly Weapon in Aid of Racketeering

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

144 months in prison

Three years’ supervised release

Gabriel Roman, 

a/k/a “Gabe”

26

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

Aggravated Identity Theft

160 months in prison

Three years’ supervised release

Dallas Archer,

a/k/a “Muggas”

29

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Bruce Allen,

a/k/a “Bam”

28

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

Brandishing a Firearm in Furtherance of a Crime of Violence

154 months in prison

Three years’ supervised release

Syncere Tatum,

a/k/a “Syn”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

160 months in prison

Three years’ supervised release

John Lalanne,

a/k/a “JJ”

27

Racketeering Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence

120 months in prison

Four years’ supervised release

Raekwon Jackson,

a/k/a “Tree”

26

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

170 months in prison

Four years’ supervised release

Bashir Mallory,

a/k/a “BG,”

a/k/a “Bear”

22

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

140 months in prison

Five years’ supervised release

Mekhi McDonald, 

a/k/a “Khi”

22

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

168 months in prison

Four years’ supervised release

Christopher Tate,

a/k/a “Bag”

23

Racketeering Conspiracy

Narcotics Conspiracy

140 months in prison

Four years’ supervised release

Kristopher Burgess Cunningham,

a/k/a “KG”

32

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Dejon Scott,

a/k/a “Red Dot”

30

60 months in prison

Three years’ supervised release

Davon Waddell,

a/k/a “Spotem,”

a/k/a “Light Skin Day Day”

28

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

Brandishing a Firearm in Furtherance of a Crime of Violence

164 months in prison

Four years’ supervised release

Zyrell Williams,

a/k/a “Zabb”

21

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

96 months in prison

Three years’ supervised release

Demetrius Ware,

a/k/a “Doom Doom”

21

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

90 months in prison

Three years’ supervised release

Antonio Pittman,

a/k/a “Ant”

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

84 months in prison

Three years’ supervised release

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

108 months in prison

Three years’ supervised release

Christopher Johnson,

a/k/a “Brisko”

32

Brandishing a Firearm in Furtherance of a Crime of Violence and Drug Trafficking Crime

Hobbs Act Robbery

Narcotics Conspiracy

144 months in prison

Four years’ supervised release

24

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

130 months in prison

Four years’ supervised release

Eric Steadman,

a/k/a “Little Man”

25

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Crime of Violence

120 months in prison

Three years’ supervised release

Donald Leid,

a/k/a “Big Lip Day Day”

32

Narcotics Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence and a Drug Trafficking Crime

94 months in prison

Five years’ supervised release

Tevin George,

a/k/a “Tev Roc”

32

84 months in prison

Five years’ supervised release

Devin Williams,

a/k/a “Twin,”

a/k/a “Dev”

29

54 months in prison

Three years’ supervised release

Dante Johnson, 

a/k/a “D Rose”

28

60 months in prison

Three years’ supervised release

George Tatum,

a/k/a “Buddy”

48

140 months in prison

Five years’ supervised release

Coleridge Lewter,

a/k/a “Korrupt”

45

72 months in prison

Three years’ supervised release

Rodney George,

a/k/a “Taco”

49

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

108 months in prison

5 years’ supervised release

United States v. Jeremy Williams, et al., 22 Cr. 641 (PMH)

Defendant

Age

Counts of Conviction

Sentence

Jeremy Williams,

a/k/a “Dubs”

37

Racketeering Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

300 months in prison

Three years’ supervised release

James White,

a/k/a “Infared”

47

Racketeering Conspiracy

Narcotics Conspiracy

300 months in prison

Three years’ supervised release

Messiah Jackson,

a/k/a “Two”

25

Racketeering Conspiracy

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

210 months in prison

Five years’ supervised release

Justice Jackson,

a/k/a “Tweak”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

180 months in prison

Five years’ supervised release

Octavious Griffin,

a/k/a “Tate”

39

Racketeering Conspiracy

Brandishing a Firearm in Furtherance of a Crime of Violence

234 months’ imprisonment

Five years’ supervised release

Markell Williams,

a/k/a “15”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

204 months in prison

Five years’ supervised release

Tyrell Simon,

a/k/a “Insane,”

a/k/a “Rello”

25

Racketeering Conspiracy

Discharge of a Firearm in Furtherance of a Crime of Violence

180 months in prison

Five years’ supervised release

Joshua Hendrick.

a/k/a “Hendrix”

26

121 months in prison

Three years’ supervised release

Elijah Briggs,

a/k/a “Eli”

29

87 months in prison

Three years’ supervised release

Shamell Williams,

a/k/a “Mello Trend”

33

87 months in prison

Three years’ supervised release

Thomas Rodriguez,

a/k/a “Tom Tom,”

a/k/a “Checks”

34

Racketeering Conspiracy

Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering

Discharge of a Firearm in Furtherance of a Crime of Violence

Narcotics Conspiracy

Possession of a Firearm in Furtherance of a Drug Trafficking Crime

360 months in prison

Five years’ supervised release

A complaint was unsealed today charging Abdul Zahir Qadeer, also known as “Haji Abdul Zahir,” a former general in Afghanistan’s Border Force and First Deputy Speaker of Afghanistan’s National Assembly’s House of the People, with conspiring to import heroin and methamphetamine and related firearms offenses. Qadeer is expected to appear in federal court in Manhattan today following his arrest in Nairobi, Kenya, on April 15, 2025, and extradition to the United States on July 10, 2026.

“While purporting to be a political leader of Afghanistan, Abdul Zahir Qadeer was allegedly leading a criminal enterprise dealing in dangerous and addictive narcotics and heavy weapons,” said Acting Attorney General Todd Blanche. “The Drug Enforcement Administration led an investigation that ended Qadeer’s audacious criminal activity, and now he will face justice in the United States.”

“Abdul Zahir Qadeer, a former high-ranking Afghan government official, allegedly also held a dual role as a large-scale international narcotics and military-grade weapons trafficker,” said U.S. Attorney Jay Clayton for the Southern District of New York. “In an attempt to traffic massive amounts of poison and weaponry — including heavy machine guns and rocket-propelled grenade launchers — Qadeer allegedly sold a two-kilogram test shipment to a buyer, which was delivered in South Africa. Unbeknownst to Qadeer, that buyer was working with the DEA. The scale of potential devastation Qadeer was attempting to bring to the U.S. is terrifying. This brazen effort underscores the need for the commitment and expertise of our career prosecutors and DEA partners.”

“"The world is safer now that Abdul Zahir Qadeer is facing justice in the United States. As a former General for Afghanistan's Border Force, Qadeer was entrusted to protect his country's borders — instead, he exploited his position to facilitate drug and weapons trafficking that fueled violence and instability,” said Administrator Terrance C. Cole of the Drug Enforcement Administration (DEA). “Make no mistake; we will use the full weight of the United States government to bring such individuals to justice. No matter where you are, no matter how powerful you think you are — you are not out of our reach.”

According to the allegations contained in the complaint and other public filings: Qadeer is a former member of Afghanistan’s National Assembly, which functioned as the legislature of Afghanistan until the Taliban regained control of the country in or about August 2021, and he was elected First Deputy Speaker of the National Assembly’s House of the People in or about 2012. Qadeer previously served as a general in Afghanistan’s Border Force, a paramilitary police organization responsible for securing Afghanistan’s border, commanding its Eighth Border Battalion in Takhar Province, Afghanistan. Qadeer is pictured below, dressed in blue, toward the left of the image:

Qadeer was also, until his arrest, a large-scale international narcotics and weapons trafficker.  As alleged in the complaint, Qadeer engaged in extensive negotiations with an individual who purported to be a member of an international drug trafficking organization (the “DTO”) but, unbeknownst to Qadeer, was in fact a confidential source (CS-1) working at the direction of the DEA.

In or about November 2024, CS-1 began communicating with Qadeer about their potential partnership in trafficking hundreds of kilograms of heroin and methamphetamine for importation into and sale in the United States for the purported DTO. As an early step in their partnership, on or about Dec. 10, 2024, Qadeer sold a two-kilogram test shipment of methamphetamine delivered to CS-1’s associate in Johannesburg, South Africa, in exchange for approximately $14,000.

Thereafter, Qadeer continued to negotiate with CS-1 regarding the sale to the DTO of hundreds of kilograms of heroin and methamphetamine, along with hundreds of heavy machine guns, assault rifles, sniper rifles, rocket-propelled grenade launchers, pistols, and grenades, which CS-1 represented would be used by the DTO to protect its drug trafficking activities from interdiction by the United States government. Pictured below is a purported weapons order from CS-1 that Qadeer agreed to fulfill: 

Upon receiving the weapons order, Qadeer provided CS-1 with quotes of how much he would charge to source each weapon, including, for example, $11,579 for one sniper rifle, $9,670 for one type of machine gun, and $1,770 for 10 grenades in one box.

In or about April 2025, Qadeer attended a meeting in Nairobi, Kenya, with several individuals who he believed to be members of the DTO he would supply with narcotics and weapons. In reality, it was a meeting between Qadeer and multiple DEA confidential sources. Kenyan law enforcement officers arrested Qadeer immediately following the meeting.

Qadeer has been charged with narcotics importation conspiracy, which carries a minimum penalty of 10 years in prison and a maximum penalty of life in prison; using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a minimum penalty of 30 years in prison and a maximum penalty of life in prison; and conspiring to use and carry machine guns and destructive devices during, and possess machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a maximum penalty of life in prison. 

The statutory maximum and mandatory minimum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

DEA’s Special Operations Division Bilateral Investigations Unit investigated the case. The FBI’s Tactical Aviation Unit assisted with Qadeer’s extradition to the United States from Kenya. The Office of International Affairs of the Department of Justice’s Criminal Division and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigations also provided assistance.

Assistant U.S. Attorneys Jonathan L. Bodansky and Chelsea L. Scism for the Southern District of New York are prosecuting the case.

The charges contained in a complaint are merely accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney for the Southern District of New York, Jay Clayton, Acting Attorney General for the United States, Todd Blanche, and Administrator of the U.S. Drug Enforcement Administration (“DEA”), Terrance C. Cole, announced today the unsealing of a Complaint charging ABDUL ZAHIR QADEER, a/k/a “Haji Abdul Zahir,” a former general in Afghanistan’s Border Force and First Deputy Speaker of Afghanistan’s National Assembly’s House of the People, with conspiring to import heroin and methamphetamine and related firearms offenses.  QADEER was presented earlier today before U.S. Magistrate Judge Henry J. Ricardo and ordered detained pending trial, following his arrest in Nairobi, Kenya, on April 15, 2025 and extradition to the United States on July 10, 2026. 

“Abdul Zahir Qadeer, a former high-ranking Afghan government official, allegedly also held a dual role as a large-scale international narcotics and military-grade weapons trafficker,” said U.S. Attorney Jay Clayton.  “In an attempt to traffic massive amounts of poison and weaponry—including heavy machine guns and rocket-propelled grenade launchers—Qadeer allegedly sold a two-kilogram test shipment to a buyer, which was delivered in South Africa.  Unbeknownst to Qadeer, that buyer was working with the DEA.  The scale of potential devastation Qadeer was attempting to bring to the U.S. is terrifying.  This brazen effort underscores the need for the commitment and expertise of our career prosecutors and DEA partners.”

“While purporting to be a political leader of Afghanistan, Abdul Zahir Qadeer was allegedly leading a criminal enterprise dealing in dangerous and addictive narcotics and heavy weapons,” said Acting Attorney General Todd Blanche.  “The Drug Enforcement Administration led an investigation that ended Qadeer’s audacious criminal activity, and now he will face justice in the United States.”

“The world is safer now that Abdul Zahir Qadeer is facing justice in the United States,” said DEA Administrator Terrance C. Cole.  “As a former General for Afghanistan’s Border Force, Qadeer was entrusted to protect his country's borders—instead, he exploited his position to facilitate drug and weapons trafficking that fueled violence and instability.  Make no mistake; we will use the full weight of the United States government to bring such individuals to justice.  No matter where you are, no matter how powerful you think you are—you are not out of our reach.”

According to the allegations contained in the Complaint and other public filings:(1)

QADEER is a former member of Afghanistan’s National Assembly, which functioned as the legislature of Afghanistan until the Taliban regained control of the country in or about August 2021, and he was elected First Deputy Speaker of the National Assembly’s House of the People in or about 2012.  QADEER previously served as a general in Afghanistan’s Border Force, a paramilitary police organization responsible for securing Afghanistan’s border, commanding its Eighth Border Battalion in Takhar Province, Afghanistan.  QADEER is pictured below, dressed in blue, toward the left of the image:

QADEER was also, until his arrest, a large-scale international narcotics and weapons trafficker.  As alleged in the Complaint, QADEER engaged in extensive negotiations with an individual who purported to be a member of an international drug trafficking organization (the “DTO”) but, unbeknownst to QADEER, was in fact a confidential source (“CS-1”) working at the direction of the DEA. 

In or about November 2024, CS-1 began communicating with QADEER about their potential partnership in trafficking hundreds of kilograms of heroin and methamphetamine for importation into and sale in the United States for the purported DTO.  As an early step in their partnership, on or about December 10, 2024, QADEER sold a two-kilogram test shipment of methamphetamine delivered to CS-1’s associate in Johannesburg, South Africa, in exchange for approximately $14,000.  Thereafter, QADEER continued to negotiate with CS-1 regarding the sale to the DTO of hundreds of kilograms of heroin and methamphetamine, along with hundreds of heavy machine guns, assault rifles, sniper rifles, rocket-propelled grenade launchers, pistols, and grenades, which CS-1 represented would be used by the DTO to protect its drug trafficking activities from interdiction by the United States government.  Pictured below is a purported weapons order from CS-1 that QADEER agreed to fulfill: 

Upon receiving the weapons order, QADEER provided CS-1 with quotes of how much he would charge to source each weapon, including, for example, $11,579 for one sniper rifle, $9,670 for one type of machine gun, and $1,770 for 10 grenades in one box.

In or about April 2025, QADEER attended a meeting in Nairobi, Kenya, with several individuals who he believed to be members of the DTO he would supply with narcotics and weapons.  In reality, it was a meeting between QADEER and multiple DEA confidential sources. Kenyan law enforcement officers arrested QADEER immediately following the meeting.

*          *          *

ABDUL ZAHIR QADEER, 52, of Afghanistan, has been charged with narcotics importation conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and conspiring to use and carry machine guns and destructive devices during, and possess machine guns and destructive devices in furtherance of, the narcotics-importation conspiracy, which carries a maximum sentence of life in prison. 

The statutory maximum and mandatory minimum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Clayton praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit.  Mr. Clayton also thanked the Federal Bureau of Investigation’s Tactical Aviation Unit, which assisted with QADEER’s extradition to the United States from Kenya; the Office of International Affairs of the Department of Justice’s Criminal Division; and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigations for their assistance.

The prosecution is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Jonathan L. Bodansky and Chelsea L. Scism are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, announced that WEIDONG GUAN, a/k/a “Bill Guan,” the former Chief Financial Officer of The Epoch Times Association, Inc. (the “Epoch Times”), an international media company headquartered in New York, New York, pled guilty yesterday to participating in a conspiracy to engage in transactions involving criminal proceeds as part of a transnational scheme to launder at least approximately $67 million of illegally obtained funds to benefit, among others, the Epoch Times.  GUAN pled guilty before District Judge Victor Marrero.  Sentencing has not yet been scheduled. 

“Weidong Guan orchestrated an elaborate multimillion-dollar money laundering scheme to increase revenues at the company where he served as Chief Financial Officer,” said U.S. Attorney Jay Clayton.  “Corporate leaders like Guan should take notice: boosting revenues through crime will not pay.  This Office is committed to holding perpetrators of financial crimes accountable and compensating victims.” 

According to the charging documents and statements made in public filings and public court proceedings:   

From at least in or about 2019, through in or about May 2024, GUAN, while serving as Chief Financial Officer of the Epoch Times, conspired with others to participate in a sprawling, international scheme to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of the Epoch Times and related entities. GUAN did so by using the Epoch Times’ funds to purchase crime proceeds loaded onto gift cards and prepaid debit cards at discounted rates of approximately 70 to 80 cents on the dollar, and then laundering those crime proceeds back to the Epoch Times under the guise of fake “donations” to the Epoch Times.  When banks notified GUAN that the transactions at issue were suspicious and asked GUAN to explain their source, GUAN knowingly misled the banks to believe the transactions were legitimate rather than criminal.   

*               *                *

GUAN, 63, of Secaucus, New Jersey, pled guilty to one count of conspiring to engage in transactions involving criminal proceeds, which carries a maximum sentence of ten years in prison.  GUAN also agreed to forfeit at least $67 million, representing property involved in the offense, and separately to pay restitution up to $67 million.  The criminal conduct at issue does not relate to the Epoch Times’ newsgathering activities.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

One of GUAN’s co-conspirators, Le Van Hung, a/k/a “Hung Van Le,” a/k/a “Van Hung Le,” pled guilty on June 29, 2026, to participating in a conspiracy to commit identity theft based on his role in the money laundering scheme.  HUNG is scheduled to be sentenced on October 9, 2026.

Mr. Clayton praised the outstanding investigative work of the Department of Labor’s Office of Inspector General, the Department of State’s Diplomatic Security Service, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. 

The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Rebecca T. Dell, Paul M. Monteleoni, Daniel C. Richenthal, and Amanda C. Weingarten are in charge of the prosecution, with the assistance of Paralegal Specialists William Spehr and Emma Vorchheimer.

Appointment of James M. McDonald

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that James M. McDonald will rejoin the Office as Deputy U.S. Attorney for the Southern District of New York for a period of transition.

“Mr. McDonald, an alumnus of the Office, is a remarkably accomplished, highly respected, and widely sought after counselor, strategist, and advocate, inside and outside the courtroom,” said U.S. Attorney Jay Clayton.  “Jamie is President Trump’s choice to be the next U.S. Attorney for the Southern District of New York, and he is an outstanding choice to lead the women and men of the Office in their efforts to serve New York families and all Americans.”     

Jamie McDonald’s experience as a lawyer and manager is vast. In addition to serving as an Assistant U.S. Attorney in the Southern District of New York, Mr. McDonald served as the Director of Enforcement at the Commodity Futures Trading Commission, as a Deputy Associate Counsel in the Office of the White House Counsel, and as a law clerk to Chief Justice John G. Roberts, Jr., of the U.S. Supreme Court and Chief Judge Jeffrey S. Sutton, Jr., of the U.S. Court of Appeals for the Sixth Circuit.

Prior to his appointment, Mr. McDonald was a Partner at Sullivan & Cromwell LLP where he was Co-Head of both the firm’s Securities & Commodities Investigations Practice and its Commodities, Futures and Derivatives Group.  He currently serves as an Adviser to the American Law Institute’s Principles of Compliance, Risk Management, and Enforcement.  Mr. McDonald previously served as a Visiting Scholar at Harvard Business School and as a Senior Fellow at New York University Law School’s Program on Corporate Compliance and Enforcement.

Mr. McDonald, originally from Oklahoma, graduated from the University of Virginia School of Law and from Harvard College.  

SDNY Leadership Transition

U.S. Attorney Jay Clayton, who has led the Office since April 2025, was recently nominated by President Trump to serve as the Director of National Intelligence.  To best serve the public and ensure a seamless transition in Office leadership, Deputy U.S. Attorney McDonald will begin to supervise the work and operations of the Office while Mr. Clayton attends to the Senate confirmation process. 

During this transition period, the executive leadership team of Sean Buckley, Amanda Houle, Jeff Oestericher, and Karl Metzner will continue to lead the Office’s work.  

“Under Sean, Amanda, Jeff, and Karl’s leadership, the Office has thrived,” said U.S. Attorney Jay Clayton.  “Their strategic allocation of resources, coordination with the NYPD, the FBI, HSI and other law enforcement partners, and their mentorship of our AUSAs have made our streets safer, combatted the efforts of terrorists and drug cartels, and pursued perpetrators of sexual exploitation and hate crimes in all aspects of our society.  We have steadfastly protected the interests of the United States, including rooting out fraud and abuse, and ensuring those entitled to benefits receive them.  It has been my great pleasure to work with Sean, Amanda, Jeff, and Karl, and I know that, with the addition of Jamie, they will continue to be an extremely effective leadership team.”

Jay Clayton Applauds the Work of the SDNY and its Law Enforcement Partners

Statement of U.S. Attorney Jay Clayton:

“In my first days as U.S. Attorney in April 2025, I asked the members of the Office ‘Where would New York families want us to focus our resources?’  Their answers led to setting the following priorities for the Office: 

• Removing career, gun-toting criminals from our streets;
• Combating the deadly fentanyl epidemic by bankrupting drug cartels and incarcerating gang leaders and their deadly soldiers; 
• Pursuing foreign adversaries who are committed to harming Americans, sowing dissent, and undermining our freedoms; and 
• Uncovering and prosecuting sex crimes and hate crimes across our communities. 

We also turned our ‘white collar’ resources on the most egregious fraudsters, insider traders, and abusers of our financial systems, public trust, and benefits programs — focusing on individual accountability and the interest of victims.

Through the round the clock efforts of the women and men of the Office, and in partnership with the NYPD (the greatest police force in the world), our DOJ colleagues, the FBI, Homeland Security, the DEA, the Department of State, the Department of the Treasury, and our many other law enforcement colleagues, we have delivered on these priorities for our fellow New Yorkers and our fellow Americans.  I am grateful to every member of the Office and the tens of thousands of officers, agents, and others who wake up every day with a commitment to ensuring our safety and protecting our freedoms.  Their dedication to the public, expertise in the law, skills in advocacy, and most importantly, mutual support, are unparalleled.”     

Below are some examples of the results of this team effort in our priority areas.

Removing Career, Gun-Toting Criminals from Our Streets

In April 2025, the SDNY joined with the Gun Violence Strategies Partnership (GVSP), an important New York City-led organization where representatives of over twenty city, state, and federal law enforcement bodies meet seven days a week to immediately and collectively address gun violence from the previous day.  Dedicated SDNY personnel work continuously with the GVSP and the NYPD to identify gun crimes where federal charges will remove career, gun-toting criminals from our streets immediately and continuously. 

Through our efforts to combat gun violence, in the past 15 months, over 250 individuals with career criminal histories have been charged with federal gun crimes and detained pending trial.  More importantly, compared to 2024, the murder rate in New York City is down by 25% and trending lower.  New York is our safest large city.  This is what New York families want and deserve.        

Combatting the Deadly Fentanyl Epidemic; Bankrupting Drug Cartels; Incarcerating Gang Leaders and their Deadly Soldiers

The illegal drug trade is a scourge on America.  The international drug cartels are committed to flooding all aspects of our society — schools, businesses, public housing, etc. — with addictive drugs.  These are billion dollar, often foreign government-enabled criminal organizations that have vast production and distribution networks.  Hooking Americans, corrupting government and business leaders, and brutally defending their turf is their stock-in-trade.  They knowingly embrace the death and destruction that follow. 

We have joined the Administration’s whole of government approach to combatting these enemies of America.  From New York City, Yonkers, White Plains, and Newburgh, to South and Central America, to China and the Middle East, our prosecutors and law enforcement partners are on a mission to bankrupt the cartels and take back our parks, schools, and housing projects.  We are winning.  Provisional reporting shows overdose deaths in New York in 2025 were down by approximately 25% compared to 2024 and continue to drop to their lowest levels in years.  The Office is committed to continuing this trend. 

In October 2025, together with the NYPD and the DEA, we shut down open-air drug dealing in Washington Square Park and charged over 15 individuals with federal drug crimes involving multiple overdose deaths.  Children can now play safely in Washington Square Park, and we have taken that model to other parks and housing projects.  Drug gangs in New York now know our truth: if you deal in fentanyl, you deal in death, and we will hold you accountable. 

In April of 2026, we charged nine current and former Mexican officials with drug trafficking, weapons offenses, and related federal crimes.  These allegations center on coordination with the Sinaloa Cartel, an organization responsible for the deaths of tens of thousands of Americans.  We also charged drug trafficking and weapons offenses involving Nicolas Maduro and other Venezuelan officials and Mexico’s Jalisco New Generation Cartel (CJNG).

The drug cartels affiliate with large-scale gangs, including Tren de Aragua (TDA), in their bloodthirsty efforts to expand and protect drug distribution.  Our focus on incarcerating gang leaders and their soldiers has resulted in charges against more than 40 alleged gang members in the past year.  In December 2025, we charged a top leader of TDA with racketeering, terrorism, and drug trafficking offenses.  We also charged leaders of the Anti-Tren splinter gang with similar offenses and have overall secured convictions against more than 10 TDA-related gang members, including multiple convictions for murder, drug-trafficking, and sex-trafficking.

Some believe we must accept cartels, gangs, and deadly drugs as part of our community.  They have been proven wrong. 

Pursuing Foreign Adversaries Who Threaten our Safety and Seek to Sow Discontent

Hamas, Hezbollah, Al-Qaeda, the IRGC, and ISIS are terrorist organizations and sworn enemies of the United States and western society, seeking to kill Americans at home and abroad.  Together with partners across the federal government, we are bringing their leaders to justice. 

In May 2026, Mohammad Al-Saadi, an alleged senior operative of Kata’ib Hezbollah and the IRGC, was arrested on terrorism charges involving multiple attacks and attempted attacks in Europe, Canada, and the U.S.  Al-Saadi is now detained in the United States and awaits trial in Manhattan.  This is one of several recent actions by our Office to disrupt the IRGC threat, including in the cybersecurity space. 

These terrorist organizations rely on foreign governments and others for funding.  Our Office is working with our federal partners to cut off their access to funds and to charge those who provide financial and other support for terror.  We recently charged Reda Sabassi in connection with his efforts to divert funds raised through purported charitable campaigns to Hamas and for personal use, and, together with our federal partners, we are pursuing similar targets. 

Our social media platforms and on-line networks are being exploited by terrorists, hostile foreign governments, and their proxies to commit offensive hacking of critical infrastructure networks and to radicalize young men and women and sow political and social discontent.  This activity is pervasive.  The costs to our foreign adversaries to radicalize and inflame using social media are low and the “benefits” to our adversaries can be great. 

In March 2026, we charged two men with multiple federal terrorism charges for allegedly throwing bombs into a crowd outside the New York City Mayor’s residence (Gracie Mansion).  Our Indictment alleges that these young men, residents of Pennsylvania, were radicalized on-line, including by watching ISIS propaganda, and intended to kill in upwards of sixty people. 

We also continue in our investigations of efforts by foreign adversaries to wage influence campaigns within the United States, to affect U.S. public policy and opinion, and to interfere with government functions. 

A great challenge we all face, and one our Office is facing head on, is protecting our sacred freedoms of speech, free association, and privacy while combatting foreign actors who use criminal means in efforts to exploit our open communications and other networks to harm us.

Uncovering and Prosecuting Sex Crimes and Hate Crimes Across Our Communities

Sex crimes, including the sexual exploitation of minors, are all too prevalent in our communities, including our schools, our hospitals, and our places of worship — the places we must trust most and must keep free from predators.  Our Office has dedicated substantial resources to this mission and adopted a victim-oriented approach to uncovering and prosecuting sexual predators. 

In the past 18 months, our Office has charged 41 individuals with federal sex crimes, including teachers, licensed therapists, bankers, and others in positions of significant trust, as well as gang members and others involved in violent crime.  Our Office, including through our Civil Rights and Human Trafficking Unit, has focused on advocating for victims by holding accountable perpetrators of sex crimes from all corners of society, including drug dealers and gang members, well-resourced financial industry leaders, real estate professionals, and public media personalities.  In addition, our prosecutors and our Civil Division AUSAs are working with our schools, hospitals, and other institutions to ensure that processes for identifying predators are improved and victims feel safe coming forward.    

In the past 18 months, the Office has also prosecuted several significant hate-based crimes in New York City, including a defendant charged with three hate crimes in connection with repeated assaults of Jewish victims in New York City between 2024 and 2025; a violent attack on a visiting Israeli rabbi on the street outside a well-known kosher restaurant, allegedly based on his religion; and an alleged attack on a gay man in the Bronx.  To further our work in this area, we hosted a conference with community leaders at NYU Law School on June 8, 2026.  The conference, titled Combatting Hate Crimes in NYC, brought together approximately 100 leaders from a diverse range of religious, ethnic, and other backgrounds to discuss federal and state efforts to prevent, investigate, and prosecute hate crimes.

When someone is attacked because of who they are — because of their faith, their ethnicity, their race, their sexual orientation — the message is not just directed at that one victim.  The message is sent to an entire community: you are not safe here. You do not belong here. You are vulnerable.

That message is unacceptable — in New York City, or anywhere else in the United States.

Prosecuting and Deterring Fraud, Waste, and Abuse

The world-leading success of our financial markets is a direct result of their integrity and the public trust.  Our Office has had a remarkably active role in ensuring market integrity in the last 18 months, criminally charging 27 CEOs and corporate leaders with fraud, charging 12 individuals with insider trading, and doubling the number of insider trading investigations year over year.  Beyond our financial markets, we have relentlessly pursued and charged those responsible for defrauding consumers, investors, and lenders of more than $1 billion in the past year alone, as well as those who cheat taxpayers by defrauding our local and federal government out of millions more.   

Our Civil Division has continued its exemplary efforts to combat benefits fraud — a scourge that wastes billions of taxpayer dollars every year.  In April 2025, we obtained a judgment after trial of nearly one billion dollars against Omnicare for fraudulently billing Medicare and Medicaid for drugs dispensed without a proper prescription.  In December 2025, we entered into a $37.76 million health care fraud settlement with CVS Pharmacy, Inc. for dispensing more insulin than patients needed and improperly receiving reimbursements from Medicare and Medicaid.  And just last month, we obtained a $36.5 million settlement of a False Claims Act suit against Matrix Medical Network for submitting false and invalid patient diagnoses to the Government to artificially inflate its Medicare payments. 

We have also improved our program that incentivizes companies to report misconduct so that it can quickly be addressed, individuals can be held accountable, and victims can be made whole.  Since its launch on February 24, 2026, SDNY’s Corporate Enforcement and Voluntary Self‑Disclosure Program for Financial Crimes has quickly gained traction and yielded tangible results.  Companies have a mechanism through which they can quickly commit to cooperation, restitution, and remediation and, in exchange, have prompt and predictable results.  Following the announcement of our program, our self-reports have substantially increased. Importantly, several of the resulting investigations have led to the identification of criminal conduct well beyond the reporting companies that, absent the self-report, may have gone undetected. 

A first public and flagship example of the benefits of this program to the public is Telekom Malaysia Berhad, which self-reported a fraud scheme and promptly received a declination conditioned on full cooperation, and, just weeks later, we were able to charge senior leaders at the company’s U.S. subsidiary with fraud. 

Our efforts to root out misconduct and build public trust have extended to prosecution of public officials who prioritize greed over the public good.  In January 2026, we charged a former high-ranking City Hall official with abusing his position to commit bribery and fraud.  In February 2026, we secured an indictment charging the former commanding officer of the New York City Police Department School Safety Division and a Florida businessman with bribery offenses.  We have also secured convictions and sentences of former high-ranking chiefs in the New York City Fire Department for soliciting and accepting bribes;  70 NYCHA employees charged with bribery, fraud, or extortion offenses; and defendants who have defrauded federal programs and charities out of millions. 

Conclusion

“Working with the women and men of the SDNY and our partners on behalf of New York families and all Americans to keep them safe from harm, protect their freedoms, and improve their quality of life, has been an immense privilege.  The Office is in great hands, has remarkable professionals, and will deliver more and more for the people of New York and America in the days to come.

I thank President Trump for entrusting me with this important role, Acting Attorney General Todd Blanche for his leadership, my colleagues at the SDNY for their unwavering commitment to the priorities of the Office, and the people of New York for their partnership, including, importantly, Police Commissioner Jessica Tisch and the women and men of the NYPD. New York is the greatest city on Earth, in the greatest country on Earth, because we support each other’s safety and freedom.”

United States Attorney for the Southern District of New York, Jay Clayton, announced today the return of two antiquities which were stolen from the Republic of Indonesia as part of an organized looting network and sold by antiquities dealer Douglas Latchford to an American collector (the “Collector”).  In or about late 2021, the Collector voluntarily relinquished a total of 34 Cambodian and Southeast Asian antiquities purchased from Latchford.  The two antiquities were returned to Indonesia today at a ceremony celebrating their repatriation at the Indonesian consulate.

“Today, we celebrate the return of Indonesia’s cultural heritage to the Indonesian people,” said U.S. Attorney Jay Clayton.  “This Office is committed to thwarting the illicit trafficking of looted and stolen art and antiquities.  We will continue to partner with HSI to end callous profiteering from stolen artworks of cultural significance, and we thank the collector of these works for their voluntary safe return.  It is with great pleasure that we send these artworks on the final leg of their journey home.” 

 The antiquities returned to Indonesia today are two 8th Century standing bronze Buddhist sculptures depicting Avalokiteshvara, approximately 16 and 20 inches tall.  The sculptures were illicitly removed from archeological sites in Indonesia by a team of looters decades ago and then sold to Latchford, who was based in Bangkok.  Between 2003 and 2007, Latchford sold these and other Southeast Asian antiquities to the Collector.  Over the years, Latchford lied to and withheld information from the Collector to conceal that the pieces were stolen.  The two bronze sculptures returned to Indonesia were the subject of a civil forfeiture action filed in this District, United States v. A Late 12th Century Bayon-Style Sandstone Sculpture Depicting Eight-Armed Avalokiteshvara, et al., 22 Civ. 229 (JMF), and identified as “Sculpture-12” and “Sculpture-27” in the civil forfeiture complaint. 

Since 2012, the U.S. Attorney’s Office for the Southern District of New York, in partnership with Homeland Security Investigations (“HSI”), has successfully investigated, identified, and repatriated dozens of stolen and illegally imported Cambodian and other Southeast Asian antiquities in the possession of individuals and institutions in the United States.  Latchford was previously indicted in the Southern District of New York in 2019 for orchestrating a multi-year scheme to sell looted Cambodian and other Southeast Asian antiquities on the international art market.  The Indictment was later dismissed due to Latchford’s death.  

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Mr. Clayton thanked HSI for its outstanding work to recover and repatriate the stolen and looted cultural property. 

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Cecilia Vogel is in charge of the case.

United States Attorney for the Southern District of New York, Jay Clayton, and Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, announced today the unsealing of a six-count Indictment charging SEAN CHISOLM, a/k/a “Slutty,” with the sex trafficking of a 16-year-old victim (“Minor Victim”), coercion and enticement of the Minor Victim, transportation of the Minor Victim from another state to New York for unlawful sexual activity, sexual exploitation of a child, and two counts of receipt and distribution of child pornography.  CHISOLM was arrested today and will be presented at a later date. The case is assigned to U.S. District Judge George B. Daniels.

“As alleged, Sean Chisolm lured a 16-year-old girl to New York so that he could sexually exploit and traffic her,” said U.S. Attorney Jay Clayton.  “Chisolm then had her engage in dangerous sex work, from which he financially profited.  Crimes like these, which target and exploit our most vulnerable, are among the worst crimes in our society.  The message from our Office and the NYPD is clear: if you sexually abuse a minor, we will find you and you will go to prison.”

“This defendant targeted a minor, coerced her into traveling out of state, and cruelly exploited and trafficked her for money,” said NYPD Commissioner Jessica Tisch.  “These crimes are not only illegal, they are absolutely reprehensible, and the NYPD is committed to protecting children from predators like this defendant.  I thank our NYPD investigators and law enforcement partners for their work on this case to bring this criminal to justice and prevent other children from being victimized by him.”

As alleged in the Indictment and other public filings:(1)

Beginning around January 2026, CHISOLM enticed the Minor Victim to travel from out-of-state, where she lived with her family, to New York so that the Minor Victim could engage in commercial sex work at CHISOLM’s direction.  Before the Minor Victim traveled to the Bronx, CHISOLM obtained from the Minor Victim a photograph and two videos that depicted the Minor Victim naked.  CHISOLM also talked with the Minor Victim about the sex acts that he wanted to engage in with her when she arrived. 

Between approximately February 2026 through March 2026, CHISOLM acted as Minor Victim’s self-described “pimp,” arranging for multiple acts of commercial sex for the Minor Victim and requiring the Minor Victim to provide him with her earnings. CHISOLM also posted an advertisement on an online classifieds website, featuring naked photos of the Minor Victim, which advertised the Minor Victim as, among other things, “Fetish Friendly.” In addition, during this time, CHISOLM filmed a video of the Minor Victim engaging in a sex act, which he told her he was planning to post online to expand her customer base. 

As early as their first conversation, CHISOLM was aware that the Minor Victim was 16 years old and frequently discussed with the Minor Victim the precautions that they would need to take as a result of the Minor Victim’s age.  For example, CHISOLM told the Minor Victim, “We just have to move correct ma[.]  Because of ya age feel me?  Never let anyone know ya real age but me NOBODY.”  CHISOLM also instructed the Minor Victim, “My rules is listen to me nd don’t tell nobody your real age nobody but daddy should know that.”      

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CHISOLM, 33, of the Bronx, New York, is charged with sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; coercion and enticement of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; transportation of a minor for unlawful sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; sexual exploitation of a child, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison; and two counts of receipt and distribution of child pornography, each of which carries a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison.

The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Clayton praised the outstanding work of the NYPD SVU Citywide Human Trafficking Squad and the Special Agents, Task Force Officers, the Digital Forensics Unit, and the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area from the U.S. Attorney’s Office for the Southern District of New York in connection with this investigation.  Mr. Clayton also thanked the Bronx County District Attorney’s Office and the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York.

This case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division.  Assistant U.S. Attorneys Ariel Cohen and Meredith Foster are in charge of the prosecution.

The charge contained in the Indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.

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    As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Nashville Field Office of the Federal Bureau of Investigation (“FBI”), Terence G. Reilly, announced today the filing of two civil forfeiture Complaints for more than $19.5 million in cash and stock obtained through pump-and-dump market manipulation schemes involving CTRL Group Limited (“CTRL Group”) and Dreamland Limited (“Dreamland”), Hong Kong-based companies listed on the Nasdaq stock exchange.  The proceeds were previously seized pursuant to judicially-authorized seizure warrants. 

“Today’s action demonstrates our unwavering commitment to protecting U.S. investors and safeguarding the integrity of our markets,” said U.S. Attorney Jay Clayton.  “These schemes, driven by Asia‑based small‑cap foreign issuers seeking to manipulate share prices and exploit American investors, pose serious risks to those who place their trust in our financial system.  Investors should exercise caution when dealing with thinly traded foreign issuers, as these companies can be especially vulnerable to manipulation and can expose investors to significant, often hidden, risks.  I want to thank the FBI and our law enforcement partners for their exceptional work and their continued dedication to rooting out this conduct and prioritizing the recovery of funds stolen from victims.”

“Pump-and-dump schemes erode the integrity of our capital markets and cause financial hardship for countless investors,” said FBI Special Agent in Charge Terence G. Reilly.  “The recovery of $19.5 million is an important first step toward providing relief for victims and should serve as a reminder that the FBI will vigorously investigate and pursue those who seek to manipulate financial systems for personal gain.”

According to the allegations contained in the Complaints filed in Manhattan federal court today:(1)

CTRL Group 

CTRL Group is a British Virgin Islands-registered company that purports to offer marketing and advertising services in Hong Kong, including mobile game promotions.  CTRL Group began trading on the Nasdaq stock exchange under the symbol MCTR on January 22, 2025.  

In late May and early June 2025, various social media accounts on multiple platforms began to post hundreds of identical comments touting MCTR as a stock that was going to increase in value.  For instance, these users would make a post saying “$MCTR Here We Go” or “$MCTR New alerts have been posted in the last hours,” followed by a link to a Discord group chat that purported to offer investment advice. 

On June 3, 2025, MCTR stock price and trading volume spiked sharply.  MCTR opened at $7.12 per share—up more than 50% from the prior day—hit an intra-day high of $33.69 per share, and closed at $32.90 per share, with approximately 44,200,000 shares trading that day, a jump of more than 70,000% compared to the previous day.  Similar price surges occurred on June 4 and June 5.  The surge in MCTR’s price and volume was accompanied by a surge in social media activity promoting MCTR.  After the social media activity stopped, MCTR’s stock price dropped.  By the end of June 2025, MCTR’s stock price had declined to $2.82 per share.

Between MCTR’s initial public offering and June 5, 2025, and primarily during the period of social media promotion discussed above, 10 U.S. brokerage accounts engaged in massive, profitable, and anomalous trading in MCTR, selling a combined total of approximately 1,065,313 shares for total proceeds of approximately $11,966,324.44.  These 10 accounts were opened by individuals located in China or Hong Kong.  Although the accounts were ostensibly owned and controlled by different people, eight of these accounts logged into their brokerage accounts with the same IP address and/or MAC address as at least one of the other accounts, indicating collusion.

On or about June 1, 2026 and June 23, 2026, the Government seized approximately $10.3 million in cash from the 10 brokerage accounts pursuant to seizure warrants issued by the U.S. District Court for the Southern District of New York.

Dreamland 

Dreamland is a Cayman Islands-incorporated company that purports to operate an event management business in Hong Kong.  Dreamland began trading on the Nasdaq stock exchange under the symbol TDIC on July 23, 2025. 

Between May 13-14, 2026, the share price of TDIC surged more than ten-fold, apparently driven at least in part by social media campaigns promoting TDIC as a “short squeeze” play.  Between January 2, 2026, and May 12, 2026, TDIC’s closing price ranged between $0.57 and $2.36 per share, with an average daily trading volume of approximately 2,600,000 shares.  On May 13, 2026, TDIC’s stock price suddenly soared to an intra-day high of $30.00 per share, before closing at $23.05 per share, with approximately 109,000,000 shares trading.  The following day, May 14, 2026, TDIC’s share price opened at $21.49 and declined to a closing share price of $0.80. By June 12, 2026, TDIC’s price closed at $0.23 per share.

On or about May 14, 2026, during the sudden surge in TDIC’s share price, a U.S. brokerage firm notified the Financial Industry Regulatory Authority (“FINRA”) of unauthorized trades as a result of compromised login credentials, resulting in potential stock manipulation of TDIC.  The credentials, which belonged to a third-party financial advisor that used the brokerage’s trading platform, were used to attempt to access eight client accounts and successfully accessed three client accounts, which attempted to purchase a combined total of approximately 1,361,488 shares of TDIC for a total of approximately $22,882,550.70 (an average share price of $16.81).  All of the purchases appear to have been cancelled by the brokerage. 

Around the same time as the social media promotion of TDIC and the compromised account activity, a brokerage account held in the name of Imperial Vision Fund SPC – Series 1 SP (“Imperial Vision”) sold approximately 1,486,841 shares of TDIC for total proceeds of approximately $17,692,745.89.  Imperial Vision purports to be a Hong Kong-based investment fund incorporated in the Cayman Islands, and it previously purchased TDIC shares directly from Dreamland.

On June 15, 2026, the Government seized approximately $8.4 million in cash and approximately $850,000 worth of securities from the Imperial Vision brokerage account pursuant to a seizure warrant issued by the U.S. District Court for the Southern District of New York.

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Mr. Clayton praised the outstanding work of the FBI.  Mr. Clayton also expressed appreciation for the assistance of FINRA and the Securities and Exchange Commission’s Cross-Border Task Force.

The two cases are being handled by the Office’s Securities and Commodities Fraud Task Force.  Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the CTRL Group action. Assistant U.S. Attorney Alexander Li is in charge of the Dreamland action.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards a judgment in favor of the United States.

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   As the introductory phrase signifies, the Complaints, and the descriptions of the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Attorney for the United States, Sean S. Buckley, Acting under Authority Conferred by 28 U.S.C. § 515, announced that MILES GUO, a/k/a “Ho Wan Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” a/k/a “Boss,” was sentenced yesterday by U.S. District Judge Analisa Torres to 30 years in prison for racketeering conspiracy, conspiracy to commit wire fraud, securities fraud, and money laundering, among other charges, for leading an expansive and complex scheme to solicit more than $1 billion of investments in various entities and programs through false statements and misrepresentations to thousands of GUO’s online followers.  On July 16, 2024, GUO was convicted following a seven-week jury trial.

“Miles Guo led a massive scheme to steal more than $1 billion through lies and deception from thousands of Americans and victims around the world,” said Attorney for the United States Sean S. Buckley.  “After immigrating to this country, rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed.  This sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimize families to enrich themselves will be met with significant consequences.”

According to the charging documents, public court filings, statements made in court, and evidence admitted at GUO’s trial: 

GUO’s schemes began when he announced the founding in 2018 of purported charitable organizations—the Rule of Law Foundation and Rule of Law Society—by falsely promising potential donors that he was contributing the first $100 million to their cause. Trading on the Rule of Law groups’ purported charitable works, GUO launched an unregistered offering of stock in his media venture, GTV. 

When the GTV stock offering came under scrutiny by the U.S. Securities and Exchange Commission, GUO and his co-conspirators turned to other schemes.  GUO obtained another $100 million through a program in which victims were told they could lend money to networks of GUO’s supporters and receive GTV stock in addition to interest payments.  At around the same time, GUO raised at least approximately $240 million by selling memberships in G|CLUBS, a purported membership club that promised GTV stock in exchange for members’ dues and offered little to no other material benefits.  In a 2021 broadcast on GTV, GUO launched the Himalaya Exchange, a purported cryptocurrency ecosystem where people could trade “H Coin” and “H Dollar,” which were phony digital assets that were fraudulently described as blockchain-native cryptocurrencies but were in fact little more than made-up figures on an internal company spreadsheet. 

GUO perpetuated these interrelated fraud schemes over approximately five years by installing figurehead executives at companies that GUO actually controlled, promising investors that he would personally guarantee their funds against loss, and broadcasting serial lies about everything from the benefits available to G|CLUBS members to the made-up gold reserve that he claimed stood behind the value of his phony digital assets.  Along the way, GUO and his family spent victims’ stolen funds on a $26.5 million mansion in New Jersey, an $832,000 Lamborghini, two multimillion-dollar sports cars for GUO’s son, and a $2 million yacht, among many other extravagant purchases. Between 2022 and 2023, the United States seized more than $630 million of GUO’s criminal proceeds in addition to luxurious items such as sports cars, a mansion, and expensive furniture, some of which are pictured below:

If you believe you are a victim of GUO’s fraud, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je. 

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In addition to the prison term, GUO, 55, originally from the People’s Republic of China, was ordered to pay a $900 special assessment.  GUO was ordered to forfeit $889 million in proceeds from his illegal schemes, as well as his interest in specific property including a $26.5 million mansion in New Jersey, a Lamborghini, a Rolls Royce Phantom, and a Bugatti sports car. 

Mr. Buckley praised the investigative work of the Federal Bureau of Investigation.  Mr. Buckley further thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action against GUO.

The case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division.  Assistant U.S. Attorneys Micah F. Fergenson, Ryan B. Finkel, Justin Horton, and Juliana N. Murray are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that Tameka Babulal, a/k/a “Tameka Williams,” a/k/a “Sharniece Williams,” a/k/a “Meek Williams,” a former United States Postal Service (“USPS”) mail carrier assigned to Mount Vernon, New York, was sentenced to 39 months in prison by U.S. District Judge Cathy Seibel for abusing her position as a mail carrier to steal checks, credit cards, financial mail, and personal identifying information from victims on her mail route, and using that stolen mail and information to commit fraud and aggravated identity theft.  The sentence imposed by Judge Seibel included 15 months on BABULAL’s mail theft, fraud, and false statement offenses, followed by a mandatory consecutive 24-month sentence for aggravated identity theft.

“Postal workers are entrusted with some of the most sensitive materials Americans send and receive: checks, credit cards, tax documents, Social Security information, and financial mail,” said U.S. Attorney Jay Clayton.  “Tameka Babulal betrayed that trust by stealing from the very people on the mail routes she was paid to serve and then using their mail and identities to commit fraud.  Today’s sentence makes clear that those who corrupt the mail system from within and exploit the public’s trust for personal gain will be held accountable.”

According to the allegations contained in the Indictment, public filings, and statements made in court proceedings:

From in or about December 2022 through May 23, 2024, BABULAL conspired with others in a scheme to possess, steal, and misuse mail stolen from the USPS in Mount Vernon, New York.  BABULAL stole hundreds of mail items from hundreds of victims whose mail she touched, including checks, credit cards, financial mail, tax documents, Social Security cards, and other sensitive materials.  She kept those items at the Hempstead, New York, residence she shared with her husband and co-conspirator, Joel Babulal.  BABULAL’s victims included elderly people in their 90s, young adults in their early 20s, business owners, churchgoers, military personnel, and other everyday people.

When law enforcement executed a search warrant at the Babulal residence on May 23, 2024, officers recovered, among other things, dozens of checks, treasury checks, and money orders in victims’ names, including blank or washed checks; 51 credit cards in other people’s names; unopened financial mail appearing to contain credit cards or checks; several Social Security cards and tax documents in other people’s names; bundles of unopened mail and packages; and a USPS postal bin filled with victims’ undelivered mail.

Using the mail and other items she stole from victims on her mail route, BABULAL carried out an extensive credit card, check, and identity theft fraud scheme involving dozens of victims.  BABULAL’s credit card scheme involved at least around $40,922.41 in fraudulent transactions using stolen credit cards.  Additionally, BABULAL’s check fraud scheme involved $13,510 in fraudulent transactions using stolen checks, and her possession of an additional at least $78,705.05 in checks and money orders.  To commit her crimes, BABULAL used various means of identification of her victims.  For example, BABULAL and her co-conspirators used their victims’ names, dates of birth, Social Security numbers, addresses, and other identifying information to fraudulently open accounts, submit credit-card applications, activate payment cards, and attempt transactions.

The Government’s investigation also revealed that BABULAL made false statements to obtain her USPS position.  In her USPS employment application, she falsely claimed that she had previously worked at a Taco Bell restaurant under a supervisor named “Mark Khan.”  In fact, “Mark Khan” was not a real person, and both the name “Mark Khan” and the phone number she listed for him were used by BABULAL’s husband and co-conspirator, Joel Babulal.

On March 18, 2026, BABULAL pled guilty before Judge Seibel to conspiracy to steal and unlawfully possess mail, theft of mail by a postal employee, unlawful possession of mail, conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, aggravated identity theft, and false statements.  BABULAL’s husband, Joel Babulal, pled guilty to conspiring with his wife and is scheduled to be sentenced on September 14, 2026.

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In addition to the prison term, BABULAL, 38, of Hempstead, New York, was sentenced to three years of supervised release and ordered to pay restitution and forfeiture.

Mr. Clayton praised the outstanding investigative work of the USPS, Office of Inspector General, and the United States Postal Inspection Service.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Reyhan Watson, John Sarlitto, and James McMahon are in charge of the prosecution.

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging eight defendants—VAGAN GULIAN, ZHIRAYR GUMRUYAN, SEVAK KOCHARIAN, ARAIK SETRAKIAN, VITALY KOSHELAN, ARKADIY PASTIN, JASHANPREET SINGH, and EDGAR BEZHANIAN—with conspiracy to transport and possess stolen property in connection with an international, organized scheme to steal cargo from commercial shippers.  

GULIAN, GUMRUYAN, and SETRAKIAN were arrested in California and will be presented in the Central District of California; KOSHELAN was arrested in Florida and will be presented in the Southern District of Florida; SINGH was arrested in Pennsylvania and will be presented in the Eastern District of Pennsylvania; PASTIN was arrested in New York and will be presented before U.S. Magistrate Judge Stewart D. Aaron; and KOCHARIAN is in custody in connection with a pending case and will be presented in the Southern District of New York.  BEZHANIAN is at large.  The case has been assigned to U.S. District Judge Andrew L. Carter.

“As alleged, the defendants were members of a sophisticated, international enterprise whose members stole millions of dollars’ worth of merchandise and sold those stolen goods on the black market,” said U.S. Attorney Jay Clayton.  “Organized cargo theft is an attack on the integrity of our nation’s commercial supply chain and our markets more generally.  Those who conspire to disrupt commerce and harm consumers will be met with a coordinated law enforcement response.  Our Office is committed to ridding our supply chains of organized crime, and we will pursue those who exploit global commerce for illicit gain.”

“These eight defendants allegedly were members of an international network to steal merchandise and resell these stolen goods at the direct expense of sellers, shippers, and buyers,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI’s Eurasian Organized Crime Task Force works to dismantle illegal operations designed to generate illicit profits both domestically and internationally.” 

As alleged in the Indictment and documents submitted to Court: 

Between in or around March 2023 and the present, the defendants, together with others known and unknown, carried out a large-scale, organized scheme to steal cargo from commercial shippers (the “Cargo Theft Enterprise”). In total, the Cargo Theft Enterprise stole goods worth at least approximately $10 million.  The Cargo Theft Enterprise operated throughout the United States and targeted high-value merchandise including electronics, liquor, meat, fish, eggs, clothing, skincare products, and cryptocurrency mining machines, among numerous other items.  The defendants and other members of the Cargo Theft Enterprise perpetrated their scheme by diverting, possessing, transporting, and selling numerous loads of stolen merchandise.  The Cargo Theft Enterprise relied on the coordinated efforts of at least one “dispatcher” located abroad and facilitators, drivers, and workers located in the United States.

In a typical theft, at least one member of the Cargo Theft Enterprise fraudulently impersonated a legitimate shipping carrier, or other shipping supply chain personnel and companies, to obtain a contract to transport goods from a shipping company to a customer.  Other members of the Cargo Theft Enterprise then picked up the load or otherwise diverted the truck containing the load away from its intended destination, including by altering the delivery address and other information on shipping paperwork, and by removing geolocation tracking devices affixed to shipped cargo to track its location and ensure it reaches its proper destination.  Once the truck reached the Cargo Theft Enterprise’s intended destination, members of the scheme offloaded and sold the stolen merchandise—including to co-conspirators known as “fences,” who knowingly purchased and resold stolen merchandise on the secondary market—for an illicit profit. 

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VAGAN GULIAN, 37, of Glendale, California; ZHIRAYR GUMRUYAN, 36, of Northridge, California; SEVAK KOCHARIAN, 37, of Brooklyn, New York; ARAIK SETRAKIAN, 36, of Los Angeles, California; VITALY KOSHELAN, 56, of Dania Beach, Florida; ARKADIY PASTIN, of Brooklyn, New York; JASHANPREET SINGH, 29, of Oaklyn, New Jersey; and EDGAR BEZHANIAN, 46, of Yerevan, Armenia, are each charged with one count of conspiracy to transport and possess stolen merchandise, which carries a maximum sentence of five years in prison.  

KOCHARIAN is separately charged with one count of conspiracy to commit extortion, which carries a maximum sentence of twenty years in prison.  That case is pending before U.S. District Judge Naomi Reice Buchwald.

The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Clayton praised the outstanding investigative work of the FBI’s Eurasian Organized Crime Task Force. Mr. Clayton also thanked the New York City Police Department, the New Jersey State Police, the Port Authority Police Department, the Manhattan District Attorney’s Office, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Kevin Grossinger and David Steinbach are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

United States Attorney for the Southern District of New York, Jay Clayton, announced today that KWANE REYNOLDS was convicted of possessing ammunition after a felony conviction.  REYNOLDS was found guilty following a three-day trial before U.S. District Judge Jeannette A. Vargas. 

“Kwane Reynolds, who had previously been convicted of a felony, shot a victim in the stomach at point-blank range on a busy public street in the Bronx,” said U.S. Attorney Jay Clayton.  “This Office is committed to prosecuting to the maximum extent of the law gun violence committed by violent felons.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

 On December 30, 2024, on a public sidewalk in the Bronx in broad daylight, the defendant fired two shots at another individual (the “Victim”).  The shooting was captured on surveillance video, which showed that, following a verbal dispute between the defendant and the Victim, REYNOLDS drew a firearm and shot the Victim in the stomach at close range. REYNOLDS then fled the scene on a bicycle.  REYNOLDS has previously been convicted of a felony. 

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REYNOLDS, 58, of Yonkers, New York, was convicted of knowingly possessing ammunition after having been convicted of a felony, which carries a maximum penalty of 15 years in prison.  A sentencing date has not yet been scheduled. 

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Clayton praised the outstanding work of the New York City Police Department. 

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Cameron Molis, Joe Zabel, and Jacob R. Fiddelman are in charge of the prosecution, with assistance from Paralegal Specialist Frank Mastroianni.